Amerant Reports Second Quarter 2022 Net Income of $7.7 Million and Core PPNR of $19.4 Million

CORAL GABLES, FL – Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”) today reported net income attributable to the Company of $7.7 million in the second quarter of 2022, or $0.23 per diluted share, a decrease compared to net income attributable to the Company of $16.0 million, or $0.45 per diluted share, in the first quarter of 2022, and a decrease compared to the net income attributable to the Company of $16.0 million, or $0.42 per diluted share, in the second quarter of 2021. $8.0 million in non-routine charges recorded in 2Q22 was the primary driver for the decline quarter-over-quarter in net income.

Core Pre-Provision Net Revenue (“Core PPNR”)¹ grew to $19.4 million in the second quarter of 2022, a $1.5 million increase from $17.9 million in the first quarter of 2022, and a $2.5 million increase from $16.9 million in the second quarter of 2021. Return on assets (“ROA”) and return on equity (“ROE”) were 0.39% and 4.14%, respectively, in the second quarter of 2022, compared to 0.84% and 8.10%, respectively, in the first quarter of 2022, and 0.83% and 8.11%, respectively, in the second quarter of 2021.

Financial Highlights:

• Net Interest Margin (“NIM”) increased to 3.28% in 2Q22 compared to 3.18% in 1Q22.

• Total assets increased to $8.2 billion compared to $7.8 billion as of 1Q22.

• Total gross loans increased $126.2 million, or 2.2%, to $5.85 billion compared to $5.72 billion in 1Q22, while average yield on loans increased to 4.38% in 2Q22 compared to 4.16% in 1Q22.

• The New York loan portfolio declined slightly to $354.0 million as of 2Q22, compared to $373.0 million in 1Q22.

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

• Total deposits as of 2Q22 were $6.20 billion, up $511.2 million compared to $5.69 billion in 1Q22. Core deposits were $4.95 billion, up $505.0 million, or 11.4%, compared to 1Q22, as the Company added new sources of deposits during the second quarter.

• Average cost of total deposits increased to 0.48% in 2Q22 compared to 0.38% in 1Q22, while the loan to deposit ratio improved to 94.27% compared to 100.52% in 1Q22.

• FHLB advances declined by $150.0 million, the result of repaying $350.0 million in callable advances and borrowing $200.0 million in long-term fixed advances to extend duration and lock-in fixed interest rates.

• AUM totaled $1.87 billion, down $261.4 million, or 12.3%, from 1Q22, reflective of market declines in value.

“We are pleased to report continued momentum in our transformation toward becoming a stronger, top performing bank” stated Jerry Plush, Chairman and CEO. “The significant reduction in non-performing loans and other actions taken during the quarter that required us to record non-routine charges will better position us for future success. The higher core PPNR for 2Q demonstrates our continued focus on profitable growth”.

Significant Actions:

• Reduced non-performing loans (“NPL”) to $25.1 million as of 2Q22 compared to $47.0 million as of 1Q22.

• As part of the NPL reduction, the Company received a $5.5 million payment and charged off the remaining $3.6 million on the previously disclosed Coffee Trader relationship. All future receipts, if any, will be recorded as recoveries.

• Amerant Mortgage reported improved results; FTEs decreased from 79 in 1Q22 to 67 as of 2Q22; reached breakeven on a stand-alone basis in 2Q22 despite challenges related to the interest rate environment.

• Successfully completed the Company’s second $50 million Class A Common Stock repurchase program. The Company has now completed two consecutive $50 million stock repurchase programs and repurchased an aggregate 3,148,399  Class A Common Stock since mid-November 2021, when the Company announced the successful conversion to one class of common stock.

• Launched new white label equipment finance solution; recorded $14.8 million in new originated loans by end of 2Q22.

• Announced the closing of a banking center to occur in early 4Q22; $1.1 million in expected annual savings; recorded non-routine closure charges of $1.6 million in 2Q22.

• Recorded remaining $2.8 million in estimated contract termination costs in 2Q22 in connection with the conversion to FIS.

• Incurred $3.6 million in other non-routine charges, including $3.2 million in Other Real Estate Owned valuation (“OREO”) and $0.7 million in severance charges, partially offset by improved valuation of $0.3 million in loans held for sale.

• Continued executing on building brand awareness by entering into a new multi-year agreement to become the official Bank of the NBA’s Miami Heat; also entered into a new multi-year agreement as a proud partner of the NHL’s Florida Panthers.

• Announced four senior executive appointments to complete build out of senior management team, including new head of consumer banking, new chief digital officer, new chief legal and administrative officer and new chief people officer.

• Increased Tampa loan production office to 10 FTEs, with most of the team focused on

For the full Q2 2022 earnings release visit Amerant’s Investor Relations site.

For more information about Amerant Bank, visit amerantbank.com and follow on  Facebook, Twitter, Instagram and LinkedIn @AmerantBank.

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About Amerant Bank

Amerant Bank is the largest community bank headquartered in Florida, with 17 banking centers in South Florida and 7 in Houston, TX. The bank has been serving clients for over 40 years and comprises subsidiaries Amerant Investments and Amerant Mortgage. Rooted in the communities it serves, Amerant Bank supports numerous non-profit, charitable and arts organizations. For news and updates, visit the Amerant Newsroom.