Amerant Reports Fourth Quarter 2024 and Full-year 2024 Results

Amerant Bancorp Inc. (NYSE:AMTB) (the "Company" or "Amerant") today reported a net income attributable to the Company of $16.9 million in the fourth quarter of 2024, or $0.40 per diluted share, compared to a net loss of $48.2 million, or $1.43 loss per diluted share, in the third quarter of 2024. Net loss attributable to the Company was $15.8 million for the full-year 2024, or $0.44 per diluted share, compared to net income of $32.5 million, or $0.96 per diluted share, for the full-year 2023.

"Our fourth quarter results show significant improvement in a number of areas," stated Jerry Plush, Chairman and CEO. "Net interest income increased over 8% while provision for credit losses declined 48%, quarter over quarter. While our asset size declined primarily from the sale of our Houston Franchise in the fourth quarter, our loan pipeline is robust heading into 2025, and we expect to be back well over $10 billion in assets in the first quarter of 2025. This past year we focused on completing our transformation toward becoming the bank of choice in Florida – in 2025, our focus now is executing on our growth plan."

Fourth Quarter Financial Highlights and Quarter-over-Quarter Changes:

• Total assets were $9.9 billion, down $455.4 million, or 4.40%, compared to $10.4 billion as of 3Q24.
• Total gross loans were $7.27 billion, a decrease of $294.7 million, or 3.90%, compared to $7.56 billion in 3Q24.
• Cash and cash equivalents were $590.4 million, down $81.5 million, or 12.13%, compared to $671.8 million as of 3Q24.
• Total deposits were $7.9 billion, down $256.9 million, or 3.17%, compared to $8.1 billion in 3Q24.
• Total advances from Federal Home Loan Bank ("FHLB") were $745.0 million, down $170.0 million, or 18.6%, compared to $915.0 million as of 3Q24. The Bank had an aggregate borrowing capacity of $2.5 billion from the FED or FHLB as of December 31, 2024.
• Average yield on loans was 7.00%, down compared to 7.08% in 3Q24.
• Total non-performing assets were $122.2 million, down $7.3 million, or 5.6%, compared to $129.4 million as of 3Q24.
• Classified loans were $125.7 million, up by $11.5 million compared to $114.2 million as of 3Q24, while non-performing loans declined by $10.8 million to $104.1 million as of 4Q24 from $114.9 million as of 3Q24. Special mention loans also declined by $71.0 million to $5.4 million as of 4Q24 from $76.4 million as of 3Q24.
• The allowance for credit losses ("ACL") was $85.0 million, an increase of $5.1 million, or 6.3%, compared to $79.9 million as of 3Q24.
• Core deposits, which consist of total deposits excluding all time deposits, were $5.6 billion, down $87.7 million, or 1.5%, compared to $5.7 billion as of 3Q24.
• Average cost of total deposits was 2.77% compared to 2.99% in 3Q24.
• Loan to deposit ratio was 92.5% compared to 93.2% in 3Q24.
• Assets Under Management and custody ("AUM") totaled $2.9 billion as of 4Q24, an increase of $339.5 million, or 13.3%, compared to $2.6 billion as of 3Q24.
• Pre-provision net revenue ("PPNR")⁽¹⁾ was $27.9 million in 4Q24, an increase of $70.8 million, or 165.1%, compared to negative $42.9 million in 3Q24. Excluding non-routine items, PPNR⁽²⁾ in 4Q24 was $37.2 million, up $6.0 million, or 19.0%, compared to $31.3 million in 3Q24.
• Net Interest Margin ("NIM") was 3.75%, up compared to 3.49% in 3Q24.
• Net Interest Income ("NII") was $87.6 million, up $6.6 million, or 8.2%, compared to $81.0 million in 3Q24.
• Provision for credit losses was $9.9 million, down $9.1 million, or 47.8%, compared to $19.0 million in 3Q24.
• Non-interest income was $23.7 million, an increase of $71.4 million, or 149.7%, compared to negative $47.7 million in 3Q24. Excluding non-routine items, non-interest income⁽²⁾ was $17.8 million, a decrease of $3.0 million, or 14.3%, compared to $20.8 million in 3Q24.
• Non-interest expense was $83.4 million, up $7.2 million, or 9.4%, compared to $76.2 million in 3Q24. Excluding non-routine items, non-interest expense⁽²⁾ was $68.2 million, a decrease of $2.3 million, or 3.3%, compared to $70.5 million in 3Q24.
• The efficiency ratio was 74.91% in 4Q24, down compared to 228.74% in 3Q24. Excluding non-routine items, efficiency ratio⁽²⁾ was 64.71%, down compared to 69.29% in 3Q24.
• Return on average assets ("ROA") was 0.67% in 4Q24 compared to negative 1.92% in 3Q24. Excluding non-routine items, ROA⁽²⁾ was 0.83% compared to 0.37% in 3Q24.
• Return on average equity ("ROE") was 7.38% in 4Q24 compared to negative 24.98% in 3Q24. Excluding non-routine items, ROE⁽²⁾ was 9.25% compared to 4.80% in 3Q24.
• The Company's Board of Directors declared a cash dividend of $0.09 per share of common stock on January 22, 2025. The dividend is payable on February 28, 2025, to shareholders of record on February 14, 2025.

Full-year Financial Highlights and Year-on-Year Changes:

• Total assets were $9.9 billion, up $0.2 billion, or 1.9%, compared to $9.7 billion as of 4Q23.
• Total gross loans were $7.27 billion, an increase of $2.4 million, or 0.03%, compared to $7.26 billion in 4Q23.
• Cash and cash equivalents were $590.4 million, up $268.5 million, or 83%, compared to $321.9 million as of 4Q23.
• Total deposits were $7.9 billion, down $40.8 million, or 0.5%, compared to $7.9 billion in 4Q23.
• Total advances from Federal Home Loan Bank ("FHLB") were $745.0 million, up $100.0 million, or 15.5%, compared to $645.0 million as of 4Q23.
• Average yield on loans was 7.00%, down compared to 7.09% in 4Q23. Average yield on loans for the full-year 2024 was 7.06%, up compared to 6.78% for the full-year 2023.
• Total non-performing assets were $122.2 million, up $67.6 million or 123.8%, compared to $54.6 million to 4Q23.
• Classified loans were $125.7 million, up by $96.0 million compared to $29.7 million as of 4Q23 and non-performing loans increased by $69.7 million to $104.1 million as of 4Q24 from $34.4 million as of 4Q23, while special mention loans declined by $40.6 million to $5.4 million as of 4Q24 from $46.0 million as of 4Q23.
• The allowance for credit losses ("ACL") was $85.0 million, a decrease of $10.5 million, or 11.0%, compared to $95.5 million in 4Q23.
• Core deposits, which consist of total deposits excluding all time deposits, were $5.62 billion, up $21.9 million, or 0.4%, compared to $5.60 billion as of 4Q23.
• Average cost of total deposits was 2.77% compared to 2.88% in 4Q23. Average cost of total deposits for the full-year 2024 was 2.94% compared to 2.47% for the full-year 2023.
• Loan to deposit ratio was 92.53% compared to 92.02% in 4Q23.
• Assets Under Management and custody ("AUM") totaled $2.9 billion as of 4Q24, an increase of $600.9 million, or 26.3%, compared to $2.3 billion in 4Q23.
• Pre-provision net revenue ("PPNR")⁽¹⁾ was $27.9 million in 4Q24, an increase of $35.5 million, or 467.8%, compared to negative $7.6 million in 4Q23. PPNR was $36.4 million for the full-year 2024, a decrease of $67.9 million, or 65.1%, compared to $104.3 million for the full-year 2023. Excluding non-routine items, PPNR⁽²⁾ for the full-year 2024 was $125.6 million, down $16.4 million, or 11.6%, compared to $142.0 million for the full-year 2023.
• Net Interest Margin ("NIM") was 3.75%, up compared to 3.72% in 4Q23. NIM was 3.58% for the full-year 2024, down compared to 3.76% for the full-year 2023.
• Net Interest Income ("NII") was $87.6 million, up $6.0 million, or 7.3%, compared to $81.7 million in 4Q23. NII was $326.0 million for the full-year 2024, down $0.5 million, or 0.16%, compared to $326.5 million for the full-year 2023.
• Provision for credit losses was $9.9 million, down compared to $12.5 million in 4Q23. Provision for credit losses was $60.5 million for the full-year 2024, compared to $61.3 million in the full-year 2023.
• Non-interest income was $23.7 million, an increase of $4.1 million, or 20.76%, compared to $19.6 million in 4Q23. Non-interest income was $9.9 million for the full-year 2024, a decrease of $77.6 million, or 88.7%, compared to $87.5 million for the full-year 2023. Excluding non-routine items, non-interest income⁽²⁾ in 4Q24 was $17.8 million, an increase of $3.9 million, or 28.0%, compared to $13.9 million in 4Q23. For the full-year 2024, non-interest income⁽²⁾ was $72.7 million, an increase of $13.7 million, or 23.2%, compared to $59.0 million for the full-year 2023.
• Non-interest expense was $83.4 million, down $26.3 million, or 24.0%, compared to $109.7 million in 4Q23. Non-interest expense was $299.5 million for the full-year 2024, down $11.9 million or 3.8%, compared to $311.4 million for the full-year 2023. Excluding non-routine items, non-interest expense⁽²⁾ in 4Q24 was $68.2 million, an increase of $1.6 million, or 2.4%, compared to $66.6 million in 4Q23, while for the full-year 2024, non-interest expense⁽²⁾ was $273.1 million, an increase of $27.9 million, or 11.38%, compared to $245.2 million for the full-year 2023.
• The efficiency ratio was 74.91% in 4Q24, down compared to 108.30% in 4Q23. The efficiency ratio was 89.17% for the full-year 2024 compared to 75.21% for the full-year 2023. Excluding non-routine items, efficiency ratio⁽²⁾ in 4Q24 was 64.71%, down compared to 69.67% in 4Q23, while for the full-year 2024, the efficiency ratio⁽²⁾ was 68.51%, up compared to 63.61% for the full-year 2023.
• Return on average assets ("ROA") was 0.67% in 4Q24 compared to negative 0.71% in 4Q23. ROA was negative 0.16% for the full-year 2024 compared to 0.34% for the full-year 2023. Excluding non-routine items, ROA⁽²⁾ in 4Q24 was 0.83% compared to 0.64% in 4Q23, while for the full-year 2024, ROA⁽²⁾ was 0.51% compared to 0.69% for the full-year 2023.
• Return on average equity ("ROE") was 7.38% in 4Q24 compared to negative 9.22% in 4Q23. ROE was negative 1.99% for the full-year 2024 compared to 4.39% for the full-year 2023. Excluding non-routine items, ROE⁽²⁾ was 9.25% in 4Q24 compared to 8.23% in 4Q23, while for the full-year 2024, ROE⁽²⁾ was 6.37% compared to 8.79% for the full-year 2023.

Additional details on fourth quarter and full-year 2024 results can be found in the Exhibits to this earnings release, and the earnings presentation available under the Investor Relations section of the Company's website at https://investor.amerantbank.com.

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

² Represents core PPNR, core noninterest income, core noninterest expense, core efficiency ratio, core ROA or Core ROE, as applicable, which are Non-GAAP measures. See "Non-GAAP Financial Measures" for more information and Exhibit 2 for a reconciliation to GAAP measures.

Fourth Quarter and Full Year 2024 Earnings Conference Call

The Company will hold an earnings conference call on Thursday, January 23, 2025 at 9:00 a.m. (Eastern Time) to discuss its fourth quarter and full-year 2024 results. The conference call and presentation materials can be accessed via webcast by logging on from the Investor Relations section of the Company's website at https://investor.amerantbank.com. The online replay will remain available for approximately one month following the call through the above link.

About Amerant Bancorp Inc. (NYSE:AMTB)

Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the "Bank"), as well as its other subsidiaries: Amerant Investments, Inc., and Amerant Mortgage, LLC. The Company provides individuals and businesses with deposit, credit and wealth management services. The Bank, which has operated for over 40 years, is headquartered in Florida and operates 19 banking centers – 18 in South Florida and 1 in Tampa, Florida. For more information, visit investor.amerantbank.com.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains "forward-looking statements" including statements with respect to the Company's objectives, expectations and intentions and other statements that are not historical facts. Examples of forward-looking statements include but are not limited to: our future operating or financial performance, including revenues, expenses, expense savings, income or loss and earnings or loss per share, and other financial items; statements regarding expectations, plans or objectives for future operations, products or services, and our expectations on our securities repositioning and loan recoveries, reaching effective resolutions on problem loans, or significantly reducing special mention and/or non-performing loans. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target," "goals," "outlooks," "modeled," "dedicated," "create," and other similar words and expressions of the future.

Forward-looking statements, including those relating to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the Company's actual results, performance, achievements, or financial condition to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not rely on any forward-looking statements as predictions of future events. You should not expect us to update any forward-looking statements, except as required by law. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in "Risk factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2023 filed on March 7, 2024 (the "Form 10-K"), our quarterly report on Form 10-Q for the quarter ended March 31, 2024 filed on May 3, 2024, our quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2024 filed on November 4, 2024, and in our other filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC's website www.sec.gov.

Interim Financial Information

Unaudited financial information as of and for interim periods, including the three month periods ended September 30, 2024, June 30, 2024, March 31, 2024, and the three and twelve month periods ended December 31, 2024, may not reflect our results of operations for our fiscal year ended, or financial condition as of December 31, 2024, or any other period of time or date.

Non-GAAP Financial Measures

The Company supplements its financial results that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP") with non-GAAP financial measures, such as "pre-provision net revenue (PPNR)", "core pre-provision net revenue (Core PPNR)", "core noninterest income", "core noninterest expenses", "core net income", "core earnings per share (basic and diluted)", "core return on assets (Core ROA)", "core return on equity (Core ROE)", "core efficiency ratio", "tangible stockholders' equity (book value) per common share", "tangible common equity ratio, adjusted for net unrealized accumulated losses on debt securities held to maturity", and "tangible stockholders' equity (book value) per common share, adjusted for net unrealized accumulated losses on debt securities held to maturity". This supplemental information is not required by, or is not presented in accordance with GAAP. The Company refers to these financial measures and ratios as "non-GAAP financial measures" and they should not be considered in isolation or as a substitute for the GAAP measures presented herein.

We use certain non-GAAP financial measures, including those mentioned above, both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view our performance using the same tools that our management uses to evaluate our past performance and prospects for future performance, especially in light of the additional costs we have incurred in connection with the Company's restructuring activities that began in 2018 and continued in 2024, including the effect of non-core banking activities such as the sale of loans and securities (including the investment portfolio repositioning initiated in the third quarter of 2024) and other repossessed assets, the sale of our Houston franchise, the valuation of securities, derivatives, loans held for sale and other real estate owned, impairment of investments, the early repayment of FHLB advances, Bank owned life insurance restructure, and other non-routine actions intended to improve customer service and operating performance. While we believe that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.

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

Exhibit 1- Selected Financial Information

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

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Exhibit 2- Non-GAAP Financial Measures Reconciliation

The following table sets forth selected financial information derived from the Company's interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related to tax deductible restructuring costs, provision for (reversal of) credit losses, provision for income tax expense (benefit), the effect of non-core banking activities such as the sale of loans and securities and other repossessed assets, the valuation of securities, derivatives, loans held for sale and other real estate owned and repossessed assets, the early repayment of FHLB advances, impairment of investments, enhancement of the bank owned life insurance and other non-routine actions intended to improve customer service and operating performance. The Company believes these adjusted numbers are useful to understand the Company's performance absent these transactions and events.

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Exhibit 3 - Average Balance Sheet, Interest and Yield/Rate Analysis

The following tables present average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the periods presented. The average balances for loans include both performing and nonperforming balances. Interest income on loans includes the effects of discount accretion and the amortization of non-refundable loan origination fees, net of direct loan origination costs, as well as premiums paid on purchased loans, accounted for as yield adjustments. Average balances represent the daily average balances for the periods presented.