•Our strategic plan and growth strategy may not be achieved as quickly or as fully as we seek;

•Defaults by or deteriorating asset quality of other financial institutions could adversely affect us;

•New lines of business, new products and services, or strategic project initiatives may subject us to additional risks;

•We may not have the ability or resources to keep pace with rapid technological changes in the financial services industry or implement new technology effectively;

•Conditions in Venezuela could adversely affect our operations;

•Our ability to achieve our environmental, social and governance goals are subject to risks, many of which are outside of our control, and our reputation could be harmed if we fail to meet such goals;

•We may be unable to attract and retain key people to support our business;

•Severe weather, natural disasters, global pandemics, acts of war or terrorism, theft, civil unrest, government expropriation or other external events could have significant effects on our business;

•Any failure to protect the confidentiality of customer information could adversely affect our reputation and subject us to financial sanctions and other costs that could have a material adverse effect on our business, financial condition and results of operations;

•We could be required to write down our goodwill;

•~~Future acquisitions~~We have a net deferred tax asset that may or may not be fully realized;

•We may incur losses due to minority investments in fintech and ~~expansion activities~~specialty finance companies;

•We are subject to risks associated with sub-leasing portions of our corporate headquarters building;

•Our success depends on our ability to compete effectively in highly competitive markets;

•Potential gaps in our risk management policies and internal audit procedures may ~~disrupt~~leave us exposed to unidentified or unanticipated risk, which could negatively affect our business;

•Any failure to maintain effective internal control over financial reporting could impair the reliability of our financial statements, which in turn could harm our business, ~~dilute shareholder value~~impair investor confidence in the accuracy and completeness of our financial reports and our access to the capital markets and cause the price of our common stock to decline and subject us to regulatory penalties;

•Material and negative developments adversely impacting the financial services industry at large and causing volatility in financial markets and the economy may have materially adverse effects on our liquidity, business, financial condition and results of operations;

•Our business activities, results of operations and financial condition are subject to adverse effects from the outbreak and spread of contagious diseases such as COVID-19, which adverse effects may continue;

•Our business may be adversely affected by economic conditions in general and by conditions in the financial markets;

•We are subject to extensive regulation that could limit or restrict our activities and adversely affect our ~~operating results;~~earnings;

•Litigation and regulatory investigations are increasingly common in our businesses and may result in significant financial losses and/or harm to our reputation;

•We are subject to capital adequacy and liquidity standards, and if we fail to meet these standards our financial condition and operations would be adversely affected;

•Increases in FDIC deposit insurance premiums and assessments could adversely affect our financial condition;

•Federal banking agencies periodically conduct examinations of our business, including our compliance with laws and regulations, and our failure to comply with any regulatory actions, if any, could adversely impact us;

•The Federal Reserve may require us to commit capital resources to support the Bank;

•We may face higher risks of noncompliance with the Bank Secrecy Act and other anti-money laundering statutes and regulations than other financial institutions;

•Failures to comply with the fair lending laws, CFPB regulations or the Community Reinvestment Act, or CRA, could adversely affect us;

•Certain of our existing shareholders could exert significant control over the Company;

•The rights of our common shareholders are subordinate to the holders of any debt securities that we have issued or may issue from time to time;

•The stock price of financial institutions, like Amerant, may fluctuate significantly;

•We have the ability to issue additional equity securities, which would lead to dilution of our issued and outstanding Class A common stock;

•Certain provisions of our amended and restated articles of incorporation and amended and restated bylaws, Florida law, and U.S. banking laws could have anti-takeover effects;

•We may not be able to generate sufficient cash to service all of our debt, including the Senior Notes, the Subordinated Notes and the ~~Subordinated Notes;~~

Debentures;

•We ~~and Amerant Florida Bancorp Inc., the subsidiary guarantor,~~ are ~~each~~ a holding company with limited operations and depend on our subsidiaries for the funds required to make payments of principal and interest on the Senior Notes, Subordinated Notes and the ~~Subordinated Notes;~~

Debentures;

•We may incur a substantial level of debt that could materially adversely affect our ability to generate sufficient cash to fulfill our obligations under the Senior Notes, the Subordinated Notes and the ~~Subordinated Notes;~~

•~~Our business may be adversely affected by economic conditions in general~~Debentures; and ~~by conditions in the financial markets;~~

•~~We are subject to extensive regulation that could limit or restrict our activities and adversely affect our earnings;~~

•~~Litigation and regulatory investigations are increasingly common in our businesses and may result in significant financial losses and/or harm to our reputation;~~

•We are subject to capital adequacy and liquidity standards, and if we fail to meet these standards, whether due to losses, growth opportunities or an inability to raise additional capital or otherwise, our financial condition and results of operations would be adversely affected;

•~~We will be subject to heightened regulatory requirements if our total assets grow in excess of $10 billion;~~

•~~The Federal Reserve may require us to commit capital resources to support the Bank;~~

•~~We may face higher risks of noncompliance with the Bank Secrecy Act and other anti-money laundering statutes and regulations than other financial institutions;~~

•~~Failures to comply with the fair lending laws, CFPB regulations or the Community Reinvestment Act, or CRA, could adversely affect us;~~

•~~Our ability to receive dividends from our subsidiaries could affect our liquidity and our ability to pay dividends;~~

•~~Certain of our existing shareholders could exert significant control over the Company;~~

•~~If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the price of our common stock and trading volume could decline;~~

•~~The stock price of financial institutions, like Amerant, may fluctuate significantly;~~

•~~We have the ability to issue additional equity securities, which would lead to dilution of our issued and outstanding Class A common stock;~~

•~~Certain provisions of our amended and restated articles of incorporation and amended and restated bylaws, Florida law, and U.S. banking laws could have anti-takeover effects;~~

•We are an “emerging growth company,” and, as a result of the reduced disclosure and governance requirements applicable to emerging growth companies, our common stock may be less attractive to investors;

•~~We may be unable to attract and retain key people to support our business;~~

•The other factors and information included in the 2022 Form 10-K and other filings that we make with the SEC under the Exchange Act and Securities Act. See “Risk Factors” in the 2022 Form 10-K, ~~for the year ended December 31, 2021.~~and this Form 10-Q.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in the 2022 Form 10-K. Because of these risks and other uncertainties, our actual future financial condition, results, performance or achievements, or industry results, may be materially different from the results indicated by the forward-looking statements in this Form 10-Q. In addition, our past results of operations are not necessarily indicative of our future results of operations. You should not rely on any forward-looking statements as predictions of future events.

Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update, revise or correct any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All written or oral forward-looking statements that are made by us or are attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in “Risk Factors” in the 2022 Form 10-K, in this Form 10-Q, and in our other filings with the SEC, which are available at the SEC’s website www.sec.gov.

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OVERVIEW

Our Company

We are a bank holding company headquartered in Coral Gables, Florida. We provide individuals and businesses a comprehensive array of deposit, credit, investment, wealth management, retail banking, mortgage services, and fiduciary services. We serve customers in our United States markets and select international customers. These services are offered through Amerant Bank, N.A, or the Bank, which is also headquartered in Coral Gables, Florida, and its subsidiaries. Fiduciary, investment, wealth management and mortgage ~~lending~~ services are provided by the Bank, the Bank’s securities broker-dealer, Amerant Investments Inc., or Amerant Investments, the Bank’s Grand-Cayman based trust company, ~~subsidiary,~~Elant Bank & Trust Ltd., or the Cayman Bank, and ~~the mortgage company,~~ Amerant Mortgage, LLC. or Amerant Mortgage. The Bank’s primary markets are South Florida, where we are headquartered and operate ~~seventeen~~sixteen banking centers in Miami-Dade, Broward and Palm Beach counties, and Houston, Texas, where we ~~have~~operate seven banking centers that serve the nearby areas of Harris, Montgomery, Fort Bend and Waller counties. In addition, we have ~~an LPO~~a loan production office (“LPO”) in Tampa, Florida.

The Bank intends to open several additional banking centers in 2023 and has obtained OCC approval to proceed with each location. The Bank intends to open new locations in Tampa, FL, Key Biscayne, FL, downtown Miami, FL, and Fort Lauderdale, FL.

Business Developments

For more information on the progress of ~~these~~our strategic initiatives in ~~2021,~~ 2022, see Item 1. Business section included in the 2022 Form 10-K.

~~Amerant Mortgage~~

On March 31, 2022, the Company contributed $1.5 million in cash to Amerant Mortgage, increasing its ownership interest to 57.4% as of March 31, 2022 from 51% as of December 31, 2021. This additional contribution had no material impact to the Company’s share of the results of operations of Amerant Mortgage for the three months ended March 31, 2022.

~~USDF Consortium~~

In February 2022, the Company was admitted to the USDF Consortium, a membership-based association of FDIC-insured banks whose mission is to further the adoption and interoperability of a bank-minted tokenized deposit (USDF™), aimed at facilitating the compliant transfer of value on the blockchain, removing friction in the financial system and unlocking the financial opportunities that blockchain and digital transactions can provide to a greater network of users. Amerant is taking one step forward toward unlocking the financial opportunities that blockchain and digital transactions can provide to a greater network of users.

Progress on ~~Near and Long-Term~~our Strategic Initiatives

The Company is dedicated to finding new ways to increase efficiencies and profitable growth across the Company while simultaneously providing an enhanced banking experience for customers. Below is ~~the detail~~a summary of actions taken by the Company in the first three months of ~~2022 to achieve these goals:~~2023:

Growing our core deposits. ~~Seizing opportunities in the markets we serve~~The loan to increase our share of consumer, small business, and commercial core deposits while reducing our reliance on brokered funds. We have identified a few ways to better target and attract these core deposits, including implementing/enhancing a completely digital onboarding platform, building out our treasury management sales force and adding additional treasury management capabilities, focusing our marketing to drive additional digital and in-branch traffic, as well as targeting other sources of deposits such as municipal accounts and wealth management.

We have continued working on implementing/enhancing a completely digital onboarding platform. In the first quarter of 2022, we made additions to the treasury management and private banking teams which contributed to increasing deposit ~~levels. We have seen improvement in three key measures since the end of last year: the average cost of total deposits decreased to 0.38% in~~ratio at March 31, ~~2022 from 0.41% in~~2023 was 97.64% compared to 98.23% at December 31, ~~2021;~~2022. The ratio of non-interest bearing deposits to total deposits ratio was ~~23.2%~~18.67% at March 31, ~~2022~~2023 compared to ~~21.5%~~19.42% at December 31, ~~2021;~~2022, which reflects growing consumer and business awareness of the ~~ratio of brokered deposits to total deposits decreased slightly to 6.1% at March 31, 2022 compared to 6.9% at December 31, 2021.~~

rising interest rates and seeking better returns.

~~Accelerating our digital transformation~~Provide a superior customer experience. ~~Over~~During the ~~past several quarters~~first quarter of 2023, we ~~ramped up our~~launched a new Amerant website which provides improved user experience with enhanced navigation and ease of access to information across all device types. In addition, the FIS conversion date has been moved from mid-May 2023 to mid-July 2023 to provide greater digital efforts with the rollout of nCino and Salesforce and the introduction of Amerant Investments Mobile and are now focused on evaluating digital solutions in several key areas, including deposit account acquisition, small business lending and wealth management. FIS, Numerated, Marstone, Alloy and ClickSWITCH® implementations are all in progress. See details on all progress in Item 1. Business section of the Form 10-K.experience for consumers.

Improving Amerant's brand awareness. ~~Since~~Our campaign "Imagine a Bank", which we launched in the ~~beginning~~fourth quarter of 2021, ~~we have been ramping up~~continues in 2023 with greater emphasis on our ~~efforts to build brand awareness in~~partnerships with sports teams across South Florida, which includes the ~~communities we serve, including improved signage~~Miami Heat, the Florida Panthers and promotions as well as developing affinity relationships and increasing our community involvement. In this area, many improvements have taken place or are underway, including the enhancement of our branch and ATM signage, rolling out new and improved branded items and significantly increasing public and media relations.

~~In the first quarter of 2022, we announced a new, multi-year partnership with~~ the University of ~~Miami’s Department of Intercollegiate Athletics, making Amerant the official “Hometown Bank” of the~~ Miami Hurricanes. We ~~continue~~also continued to ~~leverage local partnerships and~~focus on raising brand awareness through impactful campaigns, ~~which included the partnership with the Florida Panthers of the NHL,~~such as out-of-home advertising and various campaigns via social media and public ~~relations, to serve our community while meeting our strategic initiative to drive brand awareness.~~relations.

~~Rationalizing our lines of business and geographies~~. We continued to evaluate our go-to-market strategy and implemented a new business organizational model, focused on consumer and commercial banking to drive performance in the geographies we serve. In the first quarter of 2022, we received approval from the OCC for a new location in Houston while permitting is underway on the new branch in downtown Miami . We also hired a new Head of Retail Banking and recruited a new market president for the Tampa LPO. Lastly, we have also entered a multi-year agreement to implement our equipment financing business, which will provide an efficient white label solution to drive sales and provide underwriting capabilities.

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~~Evaluating new ways to achieve cost efficiencies across the~~Lines of business ~~to improve our profitability~~and geographies. ~~Among other items,~~During the first quarter of 2023, we signed a five-year lease for our first banking center in Tampa with an estimated opening in the fourth quarter of 2023. The opening of the branch will transition our Tampa operations from an LPO to a full-service bank. A full-service branch in Key Biscayne, which received regulatory approval in September 2022, is scheduled to open in the second quarter of 2023. A new branch in downtown Miami, which received regulatory approval in October 2021, is expected to open in late 2023. Lastly, our new branch in downtown Ft. Lauderdale, FL, which received regulatory approval in December 2022, is also expected to open in late 2023. In addition, we will be ~~looking at~~closing our location on FM 1960 Rd. in Houston in the ~~pricing~~second quarter of our products and offerings, balance sheet composition, as well as the categories and amounts of our spending. The Company continued to work on better aligning its operating structure and resources with its business activities.2023.

The Company continued to work on better aligning its operating structure and resources with its business activities. Effective January 1, 2022, there were 80 employees who moved from the Company to FIS® as a result of the Company’s transition toWe opened our new ~~technology provider. In addition, other HR efficiencies were also implemented~~operations center in Miramar, Florida during the first quarter of ~~2022.~~2023. This reduced the size of our operations center by approximately 42,000 square feet from 100,000 square feet to approximately 58,000 square feet at our new location, and our annual rental expense will decrease by nearly $1 million. In the first quarter of 2023, the Company ended its pre-existing lease agreement on its former operations center.

During the first quarter of 2023, we optimized our international banking structure with the intent to drive favorable core deposit growth. The previously separate groups of international retail, private and commercial banking are now reporting to a single leader dedicated to solely focus on growing international deposits. We also continued to add key personnel in Amerant Mortgage and business development personnel at the Bank. In addition, we recruited two executives for the existing open positions for a new Head of Commercial Banking and a new Houston market president. Amerant Mortgage grew its national footprint with the addition beginning early in the quarter of a Midwest hub, adding business development personnel in the quarter to generate conforming mortgages for sale into the secondary market. This growth resulted in the recognition of $1.0 million to preliminary goodwill. The final purchase price allocation, which will adjust goodwill, is expected to be finalized by December 31, 2023.

Lastly, in April 2023, we merged the business banking group with the retail banking group as part of our ongoing efforts to streamline our organizational structure.

Improve operational efficiency.

The Company continues to work on optimizing its operating structure to support its business activities. In the first quarter of 2023, staff reduction costs include severance expenses, mainly related to severance expenses in connection with employment terminations and changes in certain positions. With respect to our balance sheet composition, during the ~~first quarter of 2022,~~three months ended March 31, 2023 the Company repaid ~~$180.0~~$871.7 million in ~~short-term~~ FHLB advances, ~~and~~which includes early repayment of $565 million. In addition, in the three months ended March 31, 2023, the Company borrowed ~~$350.0 million~~$1.0 billion in ~~long-term~~FHLB advances. These ~~events effectively increased the duration of financial liabilities under a scenario of an imminent increase in interest rates.~~

~~Optimizing capital structure~~. On March 9, 2022, the Company completed a $30.0 million offering of subordinated notes with at 4.25% fixed-to-floating rate and due in March 15, 2032 (the “Subordinated Notes”). The Subordinated Notes will initially bear interest at a fixed rate of 4.25% per annum, from and including March 9, 2022, to but excluding March 15, 2027, with interest payable semi-annually in arrears. From and including March 15, 2027, to but excluding the stated maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to the then-current benchmark rate, which will initially be the three-month Secured Overnight Financing Rate (“SOFR”) plus 251 basis points, with interest during such period payable quarterly in arrears. If the three-month SOFR cannot be determined during the applicable floating rate period, a different index will be determined and used in accordance with the termsactivities are part of the ~~Subordinated Notes. Subordinated Notes are presented net of direct issuance costs which are deferred~~Company’s asset/liability management strategies intended to maximize value on its assets and ~~amortized over 10 years. The Subordinated Notes have been structured to qualify as Tier 2 capital of the Company for regulatory capital purposes,~~liabilities.

Integrate Environmental, Social and ~~rank equally in right of payment to all of~~Governance (“ESG”) into our ~~existing and future subordinated indebtedness.~~DNA.

In the first quarter of 2023, we finalized our annual report for the year ended December 31, 2022, which is now available on Amerant’s investor relations website. As part of our efforts in the ~~Company~~first quarter of 2023, we completed a series of initiatives intended to continue moving forward with our ESG program. Those activities included: i) integration of ESG factors into our procurement and third party, strategic and reputational risk frameworks; ii) completed management succession and development plans for all management roles reporting to the Company’s CEO, and continued with other levels; iii) base-lining scope 1 and 2 carbon emissions, defining long-term carbon emission targets and purchasing green-house gas emission offsets to reach carbon neutrality in 2022, among other environmentally-friendly initiatives.

In addition, in the three months ended March 31, 2023, we repurchased ~~an aggregate of 652,118~~22,403 shares of Class A common stock ~~at a weighted average price of $33.96 per share,~~ under the ~~2021 Class A Common Stock Repurchase Program. The aggregate purchase price for these transactions was approximately $22.1~~$25 million ~~including transaction costs. On January 31, 2022,~~share repurchase program. Lastly, the Company ~~announced the completion of the 2021 Class A Common Stock Repurchase Program. In addition, in the first quarter of 2022, the Company announced~~appointed a new ~~repurchase program pursuant to which~~independent director, Ashaki Rucker, who officially joined the ~~Company may purchase, from time to time, up to an aggregate amount~~Board of $50 million of its shares of Class A common stock (the “New Common Stock Repurchase Program”). In the first quarter of 2022, the Company repurchased an aggregate of 991,362 shares of Class A common stock at a weighted average price of $32.96 per share, under the New Common Stock Repurchase Program. The aggregate purchase price for these transactions was approximately $32.7 million, including transaction costs.

~~We will continue to evaluate our capital structure and ways to optimize it in the future.~~

~~Environmental, Social and Governance (“ESG”).~~ In 2021 and throughout the first quarter of 2022, we focused on developing and furthering our sustainability strategy and approach to contribute meaningfully and support a more sustainable future for our stakeholders, including our investors, employees, customers, and community These efforts lead to the Company’s publication of its first annual ESG report inDirectors effective April ~~2022, demonstrating our commitment towards being a sustainable institution.~~17, 2023.

~~COVID-19 Pandemic~~

~~CARES Act~~

On March 11, 2020, the World Health Organization recognized an outbreak of a novel strain of the coronavirus, COVID-19, as a pandemic. For a more detailed discussion of the COVID-19 pandemic, see the Form 10-K.

~~Loan Loss Reserve and Modification Programs~~

On March 26, 2020, the Company began offering loan payment relief options to customers impacted by the COVID-19 pandemic, including interest only and/or forbearance options. These programs continued throughout 2020 and in the first half of 2021. In the third quarter of 2021, the Company ceased to offer these loan payment relief options, including interest-only and/or forbearance options. Loans which have been modified under these programs totaled $848.5 million as of March 31, 2022. As of March 31, 2022, there were no loans under the deferral and/or forbearance options. At December 31, 2021, there were $37.1 million of loans under the deferral and/or forbearance options consisting of two CRE retail loans in New York. During the first quarter of 2022, the renewals of those two CRE retail loans in New York were completed. All loans that have moved out of forbearance status have resumed regular payments, except for one CRE loan of $12.1 million that was transferred to OREO during the third quarter of 2021. In accordance with accounting and regulatory guidance, loans to borrowers benefiting from these measures are not considered TDRs. See “Item 7. Management’s Discussion and Analysis Of Financial Condition And Results Of Operations” included in the Form 10-K for more details on the $12.1 million loan transferred to OREO in 2021.

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Primary Factors Used to Evaluate Our Business

Results of Operations. In addition to net income or loss, the primary factors we use to evaluate and manage our results of operations include net interest income, noninterest income and expenses, and indicators of financial performance including return on assets (“ROA”) and return on equity (“ROE”). We also use certain non-GAAP financial measures in the internal evaluation and management of our businesses.

Net Interest Income. Net interest income represents interest income less interest expense. We generate interest income from interest, dividends and fees received on interest-earning assets, including loans and investment securities we own. We incur interest expense from interest paid on interest-bearing liabilities, including interest-bearing deposits, and borrowings such as FHLB advances and other borrowings such as repurchase agreements, notes, debentures and other funding sources we may have from time to time. Net interest income typically is the most significant contributor to our revenues and net income. To evaluate net interest income, we measure and monitor: (i) yields on our loans and other interest-earning assets; (ii) the costs of our deposits and other funding sources; (iii) our net interest spread; (iv) our net interest margin, or NIM; and (v) our provisions for ~~loan~~credit losses. Net interest spread is the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. NIM is calculated by dividing net interest income for the period by average interest-earning assets during that same period. Because noninterest-bearing sources of funds, such as noninterest-bearing deposits and stockholders’ equity, also fund interest-earning assets, NIM includes the benefit of these noninterest-bearing sources of funds. Non-refundable loan origination fees, net of direct costs of originating loans, as well as premiums or discounts paid on loan purchases, are deferred and recognized over the life of the related loan as an adjustment to interest income in accordance with ~~GAAP.~~generally accepted accounting principles in the United States of America (“GAAP”).

Changes in market interest rates and the interest we earn on interest-earning assets, or which we pay on interest-bearing liabilities, as well as the volumes and the types of interest-earning assets, interest-bearing and noninterest-bearing liabilities and stockholders’ equity, usually have the largest impact on periodic changes in our net interest spread, NIM and net interest income. We measure net interest income before and after the provision for loan losses.

Noninterest Income. Noninterest income consists of, among other revenue streams: (i) service fees on deposit accounts; (ii) income from brokerage, advisory and fiduciary activities; (iii) benefits from and changes in cash surrender value of bank-owned life insurance, or BOLI, policies; (iv) card and trade finance servicing fees; (v) securities gains or losses; (vi) net gains and losses on early extinguishment of FHLB advances; (vii) income from derivative transaction with ~~customers,~~customers; (viii) ~~derivatives~~derivative gains or ~~losses,~~losses; (ix) gains or losses on the sale of ~~properties,~~properties; and (x) other noninterest ~~income.~~income which includes mortgage banking revenue.

Our income from service fees on deposit accounts is affected primarily by the volume, growth and mix of deposits we hold and volume of transactions initiated by customers (i.e. wire transfers). These are affected by prevailing market pricing of deposit services, interest rates, our marketing efforts and other factors.

Our income from brokerage, advisory and fiduciary activities consists of brokerage commissions related to our customers’ trading volume, fiduciary and investment advisory fees generally based on a percentage of the average value of assets under management and custody (“AUM”), and account administrative services and ancillary fees during the contractual period.

Income from changes in the cash surrender value of our BOLI policies represents the amounts that may be realized under the contracts with the insurance carriers, which are nontaxable.

Interchange fees, other fees and revenue sharing are recognized when earned. Trade finance servicing fees, which primarily include commissions on letters of credit, are generally recognized over the service period on a straight line basis. Card servicing fees include credit and debit card interchange fees and other fees. We have also entered into referral arrangements with recognized U.S.-based card issuers, which permit us to serve our customers and earn referral fees and share interchange revenue without exposure to credit risk.

Our gains and losses on sales of securities are derived from sales from our securities portfolio and are primarily dependent on changes in U.S. Treasury interest rates and asset liability management activities. Generally, as U.S. Treasury rates increase, our securities portfolio decreases in market value, and as U.S. Treasury rates decrease, our securities portfolio increases in value. We also recognize unrealized gains or losses on changes in the valuation of marketable equity securities not held for trading.

Our ~~gains or losses on sales of property and equipment are recorded at the date of the sale and presented as other noninterest income or expense in the period they occur.~~

~~Our~~ fee income generated on customer interest rate swaps and other loan level derivatives are primarily dependent on volume of transactions ~~complete~~completed with customers and are included in noninterest income.

In the first ~~quarter~~quarters of 2023 and 2022, ~~our~~ derivatives unrealized net gains of $14 thousand and unrealized net losses of $1.3 million, respectively, were primarily derived from ~~change~~changes in market value of uncovered interest rate caps with clients.

~~Mortgage~~Other noninterest income includes mortgage banking income related to Amerant Mortgage, which ~~commenced operations~~consists of gain on sale of loans, gain on loans market valuation, other fees and smaller sources of income. Mortgage banking income was $1.8 million and $0.8 million in ~~May 2021, is included as part of other noninterest income.~~the three months ended March 31, 2023 and 2022, respectively.

Noninterest Expense. Noninterest expense consists of: (i) salaries and employee benefits; (ii) occupancy and equipment expenses; (iii) professional and other services fees; (iv) FDIC deposit and business insurance assessments and premiums; (v) telecommunication and data processing expenses; (vi) depreciation and amortization; (vii) advertising and marketing expenses, and (viii) other operating expenses. In addition, in the first quarter of 2022, noninterest expenses include $4.0 million of estimated contract termination costs associated with third party vendors resulting from the Company’s transition to our new technology provider, and $0.5 million in a valuation allowance expense derived from our NY loans held for sale carried at the lower of cost or fair value during the three months ended March 31, 2022. Noninterest expenses generally increase as our business grows and whenever necessary to implement or enhance policies and procedures for regulatory compliance, and other purposes.

Noninterest expense consists of: (i) salaries and employee benefits; (ii) occupancy and equipment expenses; (iii) professional and other services fees; (iv) loan-level derivative expenses; (v) FDIC deposit and business insurance assessments and premiums; (vi) telecommunication and data processing expenses; (vii) depreciation and amortization; (viii) advertising and marketing expenses; and (xi) other operating expenses. In addition, in the three months ended March 31, 2022, noninterest expenses included: (i) estimated contract termination costs associated with third party vendors resulting from the Company’s transition to our new technology provider; and (ii) a valuation allowance of $0.5 million related to the change in fair value of New York loans held for sale.

Salaries and employee benefits include compensation (including severance expenses), employee benefits and employer tax expenses for our personnel. Salaries and employee benefits are partially offset by costs directly related to the origination of loans, which are deferred and amortized over the life of the related loans as adjustments to interest income in accordance with GAAP.

Occupancy expense includes lease expense on our leased properties and other occupancy-related expenses. Equipment expense includes furniture, fixtures and equipment related expenses. ~~In the three months ended March 31, 2022, rental~~Rental income, primarily associated with the subleasing of portions of the Company’s headquarters building and the subleasing of the New York office space, is included as a reduction to rent expense under lease agreements under occupancy and equipment cost. ~~Prior to 2022, rental income in connection with the previously-owned headquarters building is included as part of other noninterest income.~~

Professional and other services fees include legal, accounting, ~~and~~ consulting fees, internal audit fees, card processing fees, director’s fees, regulatory agency fees, such as OCC examination fees, and other fees related to our business operations. In

Loan-level derivative expenses are incurred in back-to-back derivative transactions with commercial loan clients and with brokers. The Company pays a fee upon inception of the ~~three months ended March 31, 2022, professional fees include expenses associated with~~back-to-back derivative transactions, corresponding to the ~~outsourcing of our internal audit function which began in the second quarter of 2021.~~spread between a wholesale rate and a retail rate.

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Contract termination costs represent estimated expenses to terminate contracts before the end of their terms, and are recognized when the Company terminates a contract in accordance with its terms, generally considered the time when the Company gives written notice to the counterparty within the notification period contractually established. Contract termination costs also include expenses associated with the abandonment of existing capitalized projects which are no longer expected to be completed as a result of a contract termination. Changes to initial estimated expenses to terminate contracts resulting from revisions to timing or the amount of estimated cash flows are recognized in the period of the changes.

Advertising expenses include the costs of promoting the Amerant brand to create positive awareness, as well as the costs associated with promoting the Company’s products and ~~services.~~services to ~~create positive awareness, or~~promote consideration to buy the Company’s products and services. These costs include expenses to produce, deliver and communicate advertisements using available media and technologies, primarily streaming and other digital advertising platforms. Advertising expenses are expensed as incurred, except for media production costs which are expensed upon the first airing of the advertisement.

FDIC deposit and business insurance assessments and premiums include deposit insurance, net of any credits applied against these premiums, corporate liability and other business insurance premiums.

Telecommunication and data processing expenses include expenses paid to our third-party data processing system providers and other telecommunication and data service providers.

Depreciation and amortization expense includes the value associated with the depletion of the value on our owned properties and equipment, including leasehold improvements made to our leased properties.

Other operating expenses include community engagement and other operational expenses. Other operating expenses are partially offset by other operating expenses directly related to the origination of loans, which are deferred and amortized over the life of the related loans as adjustments to interest income in accordance with GAAP.

Noninterest expenses in the ~~first quarter of~~three months ended March 31, 2023 and 2022 include ~~additional~~ salaries and employee benefits, mortgage lending costs and professional and other service fees in connection with Amerant Mortgage’s ongoing business.

~~Noninterest~~Non-routine noninterest expense items include restructuring expenses ~~generally increase as our business grows and whenever necessary to implement or enhance policies and procedures for regulatory compliance,~~ and other purposes. We had restructuring expenses of approximately $6.1 million and $0.2 million in the three months ended March 31, 2022 and 2021, respectively. In the three months ended March 31, 2022, restructuring expenses included: (i) $4.0 million of estimated contract termination costs associated with third party vendors resulting from the Company’s transition to our new technology provider; (ii) $1.2 million of legal and consulting fees; (iii) $0.8 million of staff reduction costs and other non-recurringnon-routine noninterest expenses. ~~In the three months ended March 31, 2021 restructuring expenses mainly consisted of staff reduction costs of $0.2 million.~~ Restructuring expenses are those incurred for actions designed to implement the Company’s strategic initiatives. These actions include, but are not limited to, reductions in workforce, streamlining operational processes, promoting the Amerant brand, implementation of new technology system applications, enhanced sales tools and training, expanded product offerings and improved customer analytics to identify opportunities. Other non-routine noninterest expenses include the effect of non-core banking activities such as the valuation of OREO and loans held for sale.

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The table below shows a detail of non-routine noninterest expenses for the periods presented.


	Three Ended Months Ended March 31,
(in thousands)	2023		2022
Non-routine noninterest expense items
Restructuring costs:
Staff reduction costs (1)	$	213	$	765
Contract termination costs (2)	—		4,012
Legal and Consulting fees (3)	2,690		1,246
Digital transformation expenses	—		45
Lease impairment charge (4)	469		14
Branch closure expenses	—		33
Total restructuring costs	$	3,372	$	6,115
Other non-routine noninterest expense items:
Loans held for sale valuation expense (5)	—		459
Total non-routine noninterest expense items	$	3,372	$	6,574

____________

(1) Staff reduction costs in the three months ended March 31, 2023 are mainly related to severance expenses in connection with employment terminations and changes in certain positions. Staff reduction costs in the three months ended March 31, 2022, were primarily related to severance expenses in connection with restructuring of business lines and the elimination of certain support functions.

(2) Contract termination and related costs associated with third party vendors resulting from the engagement of our new technology provider.

(3) In the three months ended March 31, 2023 and 2022 includes expenses in connection with the engagement of FIS of $2.6 million and $0.8 million, respectively. In the three months ended March 31, 2022, includes (i) $0.2 million in connection with certain search and recruitment expenses; and (ii) $0.1 million of costs associated with the subleasing of the New York office space.

(4) In the three months ended March 31, 2023, includes $0.5 million of right-of-use asset, or ROUA, impairment associated with the closure of a branch in Texas in 2023.

(5) Fair value adjustment related to one OREO property in New York.

Primary Factors Used to Evaluate Our Financial Condition

The primary factors we use to evaluate and manage our financial condition include asset quality, capital and liquidity.

Asset Quality. We manage the diversification and quality of our assets based upon factors that include the level, distribution and risks in each category of assets. Problem assets may be categorized as classified, delinquent, nonaccrual ~~nonperforming~~ and ~~restructured~~nonperforming assets. We also manage the adequacy of our allowance for ~~loan~~credit losses (“~~ALL”~~ACL”), or the allowance, the diversification and quality of loan and investment portfolios, the extent of counterparty risks, credit risk concentrations and other factors.

On January 1, 2022, the Company adopted ASC Topic 326 - Financial Instruments - Credit Losses, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. See Note 1 to the audited consolidated financial statements in the 2022 Form 10-K and the unaudited interim consolidated financial statements in this Form 10-Q for more details on the adoption of CECL by the Company. We review and update our ~~ALL~~allowance for ~~loan~~expected credit losses periodically to calibrate loss ~~model annually or more frequently if needed, to better reflect~~estimation models based on our loan volumes, and credit and economic conditions in our markets. The ~~model~~models may differ among our loan segments to reflect their different asset types, and includes qualitative factors, which are updated ~~semi-annually,~~periodically based on the type of ~~loan.~~loan and other factors.

Capital. Financial institution regulators have established minimum capital ratios for banks and bank holding companies. We manage capital based upon factors that include: (i) the level and quality of capital and our overall financial condition; (ii) the trend and volume of problem assets; (iii) the adequacy of reserves; (iv) the level and quality of earnings; (v) the risk exposures in our balance sheet under various scenarios, including stressed conditions; (vi) the Tier 1 capital ratio, the total capital ratio, the Tier 1 leverage ratio, and the CET1 capital ratio; (vii) the tangible common equity ratio; and ~~(vii)~~(viii) other factors, including market conditions.

Liquidity. Our deposit base consists primarily of personal and commercial accounts maintained by individuals and businesses in our primary markets and select international core depositors. The Company is focused on relationship-driven core deposits. ~~In 2021, we changed our definition~~The Company may also use third party providers of domestic sources of deposits as part of its balance sheet management strategies. We define core deposits ~~to better align its presentation with the Company’s internal monitoring and overall liquidity strategy. Under this new definition, core deposits consist of~~as total deposits excluding all time deposits. ~~In prior periods, the Company used~~This definition of core deposits differs from the Federal Financial Institutions Examination Council’s (the “FFIEC”) Uniform Bank Performance Report (the “UBPR”) definition of “core deposits,” which exclude brokered time deposits and retail time deposits of more than $250,000. See ~~“Core~~“Core Deposits” discussion for more details.

We manage liquidity based upon factors that include the amount of core deposit relationships as a percentage of total deposits, the level of diversification of our funding sources, the allocation and amount of our deposits among deposit types, the short-term funding sources used to fund assets, the amount of non-deposit funding used to fund assets, the availability of unused funding sources, off-balance sheet obligations, the amount of cash and liquid securities we hold, the availability of assets readily convertible into cash without undue loss, the characteristics and maturities of our assets when compared to the characteristics of our liabilities and other factors.

~~Seasonality. Our loan production, generally, is subject to seasonality, with the lowest volume typically in the first quarter of each year.~~

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Summary Results

The summary results for the three months ended March 31, ~~2022~~2023 include the following:

•~~Net income attributable~~Total assets were $9.5 billion at March 31, 2023, up $367.5 million, or 4.03%, compared to $9.1 billion at December 31, 2022. Asset growth includes an additional $200 million in cash held at the ~~Company~~Federal Reserve Bank since mid-March for a total of $485.8 million in cash and cash equivalents at March 31, 2023.

•Total gross loans were $7.12 billion at March 31, 2023, up $195.4 million, or 2.8%, compared to $6.92 billion at December 31, 2022.

•Total deposits were $7.29 billion at March 31, 2023, up $242.5 million, or 3.44%, compared to December 31, 2022.

•Total advances from the FHLB were $1.05 billion, up $145.5 million, or 16.05%, compared to $906.5 million as of December 31, 2022, the result of now holding additional liquidity on hand as noted above. An additional $1.7 billion remained available from FHLB as of March 31, 2023.

•Average yield on loans increased to 6.38% in the three months ended March 31, 2023 compared to 4.16% in the three months ended March 31, 2022.

•Total non-performing assets increased to $48.7 million at March 31, 2023, up $11.1 million, or 29.6%, compared to $37.6 million at December 31, 2022.

•The ACL as of March 31, 2023 was ~~$16.0~~$84.4 million, up $0.9 million, or 1.0%, compared to $83.5 million as of December 31, 2022.

•Core deposits were $5.36 billion at March 31, 2023, up $41.4 million, or 0.8%, compared to $5.32 billion at December 31, 2022.

•Average cost of total deposits increased to 1.91% in the three months ended March 31, 2023 compared to 0.38% in the three months ended March 31, 2022.

•Loan to deposit ratio improved to 97.64% as of March 31, 2023 compared to 98.23% as of December 31, 2022.

•AUM totaled $2.11 billion, as of March 31, 2023, up $111.9 million, or 5.6%, from $2.00 billion as of December 31, 2022.

•Pre-provision net revenue (“PPNR”)(2) was $37.2 million in the ~~first quarter~~three months ended March 31, 2023, an increase of ~~2022, up 10.3% from $14.5~~$27.3 million or 274.6%, compared to $9.9 million in the ~~first quarter~~three months ended March 31, 2022.

•Core Pre-Provision Net Revenue (“Core PPNR”)(2) was $37.1 million in the three months ended March 31, 2023, an increase of ~~2021.~~$19.2 million, or 107.6%, from $17.9 million in the three months ended March 31, 2022.

•Net Interest Margin (“NIM”) increased to 3.90% in the three months ended March 31, 2023 compared to 3.18% in the three months ended March 31, 2022.

•Net Interest Income (“NII”) was ~~$55.6 million,~~ up ~~17.0% from $47.6~~$82.3 million in the ~~first quarter of 2021. Net interest margin (“NIM”) was 3.18%~~three months ended March 31, 2023, up $26.7 million, or 47.96%, from $55.6 million in the ~~first quarter of 2022,~~ up ~~52 basis points from 2.66% in the first quarter of 2021.~~three months ended March 31, 2022.

•~~The Company released $10.0 million from the allowance~~Provision for ~~loan losses during the first quarter of 2022.~~ ~~No provision for loan~~credit losses was ~~recorded~~$11.7 million in the ~~first quarter of 2021.~~three months ended ~~The ratio of allowance for loan losses to total loans held for investment was 1% as of~~ March 31, ~~2022~~2023, compared to a release from ACL of $9.3 million in the three months ended ~~1.93% as of~~ March 31, ~~2021.~~2022(1). The ~~ratio of net charge-offs to average total loans held~~provision for ~~investment~~credit losses in the ~~first quarter~~three months ended March 31, 2023 was comprised of ~~2022 was 0.29% compared~~ $7.5 million in connection with charge-offs and credit quality, $2.2 million related to ~~zero net charge offs in the first quarter of 2021.~~loan growth and $2.0 million to reflect updated economic factors.

•Non-interest income was $19.3 million in the three months ended March 31, 2023, up $5.3 million or 37.92%, from $14.0 million in the ~~first quarter of 2022,~~ ~~slightly down 1.0% from $14.2 million in the first quarter of 2021.~~three months ended March 31, 2022.

•Non-interest expense was ~~$60.8 million, up 39.4% from $43.6~~$64.7 million in the ~~first quarter of 2021, as the first quarter of 2022 included $6.6~~three months ended March 31, 2023, down $3.9 million, or 6.44%, from $60.8 million in ~~non-recurring charges, inclusive of $4.0 million on estimated contract termination costs.~~the three months ended March 31, 2022.

•The efficiency ratio was ~~87.3%~~63.7% in the ~~first quarter of 2022 and 70.7%~~three months ended March 31, 2023 compared to 87.29% in the ~~first quarter of 2021.~~three months ended March 31, 2022.

•~~Total gross loans, including loans held for sale, were $5.72 billion at~~ROA was 0.88% in the ~~close of~~three months ended March 31, 2023, compared to 0.81% in the ~~first quarter of~~three months ended March 31, 2022 up ~~$153.6 million, or 2.8%, compared to the close of the fourth quarter of 2021. Total deposits were $5.69 billion at the close of the first quarter of 2022,~~ (1)up ~~by $60.8 million, or 1.08%, compared to the close of the fourth quarter of 2021.~~.

•~~Stockholders’ book value per common share attributable to~~Return on average equity (“ROE”) was 11.15% in the ~~Company was $21.82 at~~three months ended March 31, ~~2022,~~2023 compared to ~~$23.18 at December 31, 2021. Tangible book value per common share was $21.15 as of~~7.81% in the three months ended March 31, 2022 ~~compared to $22.55 at December 31, 2021.~~ ~~See “Tangible Common Equity and Tangible Book Value Per Common Share” for a reconciliation of these non-GAAP financial measures.~~(1).

1 The Company adopted the new guidance on accounting for current expected credit losses on financial instruments (“CECL”) in the fourth quarter of 2022, effective as of January 1, 2022. See the 2022 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 Non-GAAP measure, see “Non-GAAP Financial Measures” for more information and for a reconciliation to GAAP.

Results of Operations - Comparison of Results of Operations for the Three Months Ended March 31, ~~2022~~2023 and ~~2021~~2022

Net income

The table below sets forth certain results of operations data for the three month periods ended March 31, ~~2022~~2023 and ~~2021:~~2022:

Three Months Ended March 31, Change
(in thousands, except per share amounts and percentages) 2022 2021 2022 vs 2021
Net interest income $ 55,645 $ 47,569 $ 8,076 17.0 %
(Reversal of) provision for loan losses (10,000) — (10,000) NM
Net interest income after (reversal of) provision for loan losses 65,645 47,569 18,076 38.0 %
Noninterest income 14,025 14,163 (138) (1.0) %
Noninterest expense 60,818 43,625 17,193 39.4 %
Income before income tax expense 18,852 18,107 745 4.1 %
Income tax expense (3,978) (3,648) (330) 9.1 %
Net income before attribution of noncontrolling interest 14,874 14,459 415 2.9 %
Noncontrolling interest (1,076) — (1,076) NM
Net income attributable to Amerant Bancorp Inc. $ 15,950 $ 14,459 $ 1,491 10.3 %
Basic earnings per common share $ 0.46 $ 0.38 $ 0.08 21.1 %
Diluted earnings per common share (1) $ 0.45 $ 0.38 $ 0.07 18.4 %


	Three Months Ended March 31,				Change
(in thousands, except per share amounts and percentages)	2023		2022		2023 vs 2022
			(1)
Net interest income	$	82,333	$	55,645	$	26,688	48.0	%
Provision for (reversal of) credit losses (1)	11,700		(9,275)		20,975		226.2
Net interest income after provision (reversal of) for credit losses (1)	70,633		64,920		5,713		8.8	%
Noninterest income	19,343		14,025		5,318		37.9	%
Noninterest expense	64,733		60,818		3,915		6.4	%
Income before income tax expense (1)	25,243		18,127		7,116		39.3	%
Income tax expense (1)	(5,301)		(3,824)		(1,477)		(38.6)	%
Net income before attribution of noncontrolling interest (1)	19,942		14,303		5,639		39.4	%
Less: noncontrolling interest	(244)		(1,076)		832		77.3	%
Net income attributable to Amerant Bancorp Inc. (1)	$	20,186	$	15,379	$	4,807	31.3	%
Basic earnings per common share (1)	$	0.60	$	0.44	$	0.16	36.4	%
Diluted earnings per common share (1) (2)	$	0.60	$	0.44	$	0.16	36.4	%

__________________

(1) Amounts reflect the impact of the adoption of CECL effective as of January 1, 2022. See Note 1 to our unaudited interim consolidated financial statements in this Form 10-Q for additional information.

(2) In the three months ended March 31, 2023 and 2022, potential dilutive instruments consisted of unvested shares of restricted stock, restricted stock units and performance share ~~units (consisted of unvested shares of restricted stock and restricted stock units in the three months ended March 31, 2021).~~units. See Note 1918 to our unaudited interim consolidated financial statements in this Form 10-Q for details on the dilutive effects of the issuance of restricted stock, restricted stock units and performance share units on earnings per share for the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022.

~~NM - means not meaningful~~

Three Months Ended March 31, ~~2022~~2023 and ~~2021~~2022

In the three months ended March 31, ~~2022,~~2023, net income attributable to the Company was ~~$16.0~~$20.2 million, or ~~$0.45~~$0.60 per diluted share, compared to net income attributable to the Company of ~~$14.5~~$15.4 million, or ~~$0.38~~$0.44 per diluted share, in the same quarter of ~~2021.~~2022. The increase of ~~$1.5~~$4.8 million, or ~~10.3%~~31.3%, ~~was mainly due to: (i) the $10.0 million reversal of loan losses~~ in the three months ended March 31, ~~2022 (no~~2023 was mainly due to higher net interest income and noninterest income. These results were partially offset by: (i) a $11.7 million provision orfor credit losses recorded in the first quarter of 2023, compared to a $9.3 million reversal of ~~loan~~credit losses ~~was recorded~~ in the same period last year, and (ii) higher noninterest expenses.

In the three months ended March 31, ~~2021),~~2023 and ~~(ii) higher~~2022, net ~~interest income. These results were partially offset by higher noninterest expenses and lower noninterest income. Net~~ income excludes a loss of $0.2 million and $1.1 million, ~~loss~~respectively, attributable to a ~~49% non-controlling~~noncontrolling interest ofin Amerant ~~Mortgage, which commenced operations~~Mortgage. See the 2022 Form 10-K for more information on changes in ~~May 2021. The Company attributed a net loss of $1.1 million to the non-controlling~~noncontrolling interest on the basis of a $2.2 million net loss for Amerant Mortgage for the three months ended March 31, 2022, primarily derived from salary and employee benefits which are included in our consolidated results of operations. Beginning March 31, 2022, the minority interest share in Amerant Mortgage ~~changed from 49% to 42.6%. This change had~~in 2022. There were no ~~material impact to the Company’s financial condition or results of operations as of and for~~significant changes in the first quarter ~~ended March 31, 2022.~~of 2023.

5765

Net interest income was $82.3 million in the three months ended March 31, 2023, an increase of $26.7 million, or 48.0%, from $55.6 million in the three months ended March 31, ~~2022,~~2022. This was primarily driven by: (i) an increase of ~~$8.1 million, or 17.0%, from $47.6 million~~220 basis points in the ~~three months ended March 31, 2021. This was primarily the result of (i) higher yields~~yield on total interest earning assets, ~~mainly~~and (ii) increases of $1.4 billion, or 25.6%, and $126.0 million, or 109.9%, in the average balance of loans and debt securities ~~available for sale; (ii) lower average balance of time deposits and FHLB advances, and (iii) lower average cost of total deposits.~~held to maturity, respectively. The increase in net interest income was partially offset ~~by lower~~by: (i) higher cost of total deposits and FHLB advances; (ii) higher average balance of total ~~interest earning assets~~deposits, mainly time deposits; and ~~higher average~~(iii) the cost of ~~FHLB advances. In addition,~~the Subordinated Notes issued in March 2022. See “Net interest Income” for more details.

Noninterest income was $19.3 million in the three months ended March 31, ~~2022 include the additional interest expense associated with subordinated notes issued in March 2022. See “-Net interest Income”~~ ~~for more details.~~

~~Noninterest income was~~2023, an increase of $5.3 million, or 37.9%, compared to $14.0 million in the three months ended March 31, ~~2022, a decrease~~2022. This was mainly driven by: (i) higher net gains on the early extinguishment of ~~$0.1 million, or 1.0%, compared to $14.2~~advances from the FHLB; (ii) the absence of net unrealized losses on derivative valuation of $1.3 million in the three months ended March 31, ~~2021. This was~~2022 related to interest rate caps with clients; (iii) higher mortgage banking income; and (iv) higher deposit and service fees. These increases were partially offset by: (i) net losses on the sale of securities totaling $9.7 million in the three months ended March 31, 2023, mainly ~~due to a: (i) a decrease~~driven by losses on the sale of ~~$1.8~~debt securities available for sale and marketable equity securities; (ii) lower loan-level derivative income; and (iii) lower brokerage, advisory and fiduciary fees. See “Noninterest Income” for more details.

Noninterest expense increased $3.9 million, or ~~70.2%~~6.4%, in ~~net gains on securities; (ii)~~the three months ended March 31, 2023 compared to the same period in 2022, primarily driven by higher salary and employee benefits, other operating expenses, professional and other service fees, FDIC assessments and insurance expenses and loan level derivative ~~unrealized losses~~expenses. These increases were partially offset by: (i) the absence in the first quarter of ~~$1.3~~2023 of an additional expense of $4.0 million in the three months ended March 31, 2022 in connection with ~~uncovered interest rate caps with clients,~~the termination of technology contracts resulting from the transition to FIS supported systems and applications; (ii) lower telecommunication and data processing expenses; (iii) ~~a loss~~the absence of ~~$0.7 million on the early extinguishment~~valuation allowance of $180.0 million of FHLB advances in the three months ended March 31, 2022. The decrease in noninterest income was partially offset by record-high loan-level derivative income, deposit and service fees and other noninterest income. See “-~~Noninterest Income”~~ ~~for more details.~~

~~Noninterest expense was $60.8~~$0.5 million in the three months ended March 31, 2022 ~~an increase of $17.2 million, or 39.4%, from $43.6 million~~related to the change in the three months ended March 31, 2021. This was primarily driven by higher salary and employee benefits, professional and other service fees, advertising expenses and occupancy and equipment expenses. In addition, in three months ended March 31, 2022, noninterest expenses include: (i) $4.0 million of estimated contract terminations and related costs associated with third party vendors resulting from the Company’s transition to our new technology provider, and (ii) a valuation allowance of $0.5 million resulting from the fair value ~~adjustment~~ of New York loans held for ~~sale carried at the~~sale; and (iv) lower ~~of cost or fair value. These increases were partially offset by lower depreciation and amortization expenses and FDIC assessments and insurance~~advertising expenses. ~~See “-Noninterest Expense”~~See “Noninterest Expense” for more details.

In the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, noninterest expense included non-routine items of ~~$6.6~~$3.4 million and ~~$0.2~~$6.6 million, respectively. Non-routine items in noninterest expense include ~~$6.1~~$3.4 million and ~~$0.2~~$6.1 million of restructuring costs in the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, respectively. In addition, in the three months ended March 31, 2022, non-routine items in noninterest expense ~~include~~included a valuation allowance of $0.5 million ~~resulting from~~related to the change in fair value ~~adjustment~~ of New York loans held for ~~sale carried at the lower of cost or fair value.~~sale. See “Our Company - Primary Factors Used to Evaluate Our Business” for detailed information on non-routine items in noninterest expense.

~~Noninterest expense in~~

In the three months ended March 31, 2023 and 2022, ~~included additional~~the Company incurred noninterest expenses of $3.9 million and $3.5 million, respectively, related to Amerant Mortgage which consists of salaries and employee benefits expense, mortgage lending costs and professional and other services ~~fees related to~~fees. Amerant Mortgage ~~which commenced operations in May 2021 and~~ had 7994 full time equivalent employees (“FTEs”) at March 31, 2023 compared to 79 at March 31, 2022.

~~Net interest income~~

~~Three Months Ended March 31, 2022 and 2021~~

In the three months ended March 31, 2022, net interest income was $55.6 million, an increase of $8.1 million, or 17.0%, from $47.6 million in the same period of 2021. This was mainly driven by: (i) an increase of of 34 basis points in the yield on total interest earning assets, mainly loans and debt securities available for sale; (ii) a decline of $464.7 million, or 7.8%, in the average balance of total interest bearing liabilities, mainly time deposits and FHLB advances, and (iii) lower average cost of total deposits. The increase in net interest income was partially offset by: (i) a decline of $157.7 million, or 2.2%, in the average balance of total interest earning assets, and (ii) higher average cost of FHLB advances. In addition, the three months ended March 31, 2022 include the additional interest expense associated with subordinated notes issued in March 2022. Net interest margin was 3.18% in the three months ended March 31, 2022, an increase of 52 basis points from 2.66% in the three months ended March 31, 2021. See discussions further below for more details.

During three months ended March 31, 2022, in light of the rising rate environment, the Company, actively managed the duration of its liabilities. In the three months ended March 31, 2022, the Company repaid $180.0 million in short-term FHLB advances and borrowed $350.0 million in longer-term advances to extend the duration of this portfolio and fix them at lower cost than previously borrowed funds. In terms of our deposits, we have adjusted only certain large commercial relationships given their rate sensitivity, however, most of the rates on transactional deposits remained fairly unchanged. In addition, in the three months ended March 31, 2022, we completed a private placement of $30 million of 4.25% fixed-to-floating rate subordinated notes due 2032. On the assets side, the Company continued looking for additional opportunities through indirect lending programs. ~~Despite the Company’s asset sensitive balance sheet, the recent increase in market rates did not significantly impact our~~NIM as market rates changed closer to quarter end and overall funding costs were managed to stay low. As market rates are expected to continue to increase, the Company is positioned to benefit from this rate environment. Additionally, the Company continues to proactively seek to increase non interest bearing deposits and loan spreads to support NIM growth. ~~See discussions further below for more details on the subordinated notes.~~

~~Interest Income.~~ Total interest income was $65.1 million in the three months ended March 31, 2022, an increase of $4.8 million, or 7.9%, compared to $60.3 million for the same period of 2021. This was primarily driven by a 34 basis points increase in the average yield on total interest earning assets, mainly driven by higher yields on loans and debt securities available for sale. This increase was partially offset by a decrease of $157.7 million, or 2.2%, in the average balance of total interest earning assets, mainly loans.

Interest income on loans in the three months ended March 31, 2022 was $56.3 million, an increase of $3.6 million, or 6.8%, compared to $52.8 million for the comparable period of 2021. This result was primarily due to a 39 basis points increase in average yields, mainly attributable to higher-yielding consumer loans purchased throughout 2021 and the first quarter of 2022. In addition, there was an increase in prepayment penalties of $0.4 million in the three months ended March 31, 2022 compared to the same period last year. The increase in interest income on loans was partially offset by a decline of $186.0 million, or 3.3%, in the average balance in the first quarter of 2022 over the same period in 2021, mainly attributable to loan prepayments, the sale and forgiveness of PPP loans and the sale of New York real estate loans. ~~See~~ ~~“—Average Balance Sheet, Interest and Yield/Rate Analysis” for detailed information.~~

Interest income on debt securities available for sale was $7.4 million in the three months ended March 31, 2022, an increase of $0.9 million, or 13.6%, compared to $6.5 million in the same period of 2021. This was mainly due to an increase of 38 basis points in average yields, primarily on lower prepayments~~. This was partially offset by~~ a decrease of $37.3 million, or 3.1%, in the average balance of these securities. The decline in the average balance was due to prepayments and decrease in carrying value due to market rates increasing throughout the quarter. As of March 31, 2022, corporate debt securities comprised 31.4% of the available-for-sale portfolio, up from 29.0% at March 31, 2021. We continue with our strategy to insulate the investment portfolio from prepayment risk. As of March 31, 2022, floating rate investments represent 17.5% of our total investment portfolio compared to 13.9% at March 31, 2021. In addition, the overall duration increased to 4.0 years at March 31, 2022 from 3.4 years at March 31, 2021, which was mainly due to lower expected prepayment speeds recorded in our mortgage-backed securities portfolio in light of rising interest rates.

~~Interest Expense.~~ Interest expense was $9.5 million in the three months ended March 31, 2022, a decrease of $3.3 million, or 25.9%, compared to $12.8 million in the same period of 2021. This was primarily due to: (i) a decrease of $464.7 million, or 7.8%, in the average balance of total interest bearing liabilities, mainly time deposits and FHLB advances, and (ii) lower average cost of total deposits. This was partially offset by: (i) higher average cost of FHLB advances, and (ii) the additional interest expense associated with the subordinated notes issued in March 2022.

Interest expense on interest-bearing deposits was $5.3 million in the three months ended March 31, 2022, a decrease of $3.1 million, or 37.1%, compared to $8.5 million for the same period of 2021, primarily due to: (i) a decline of $661.3 million, or 33.8%, in the average balance of time deposits, and (ii) a 23 basis points decline in the average rates paid on interest-bearing total deposits. These declines were partially offset by a higher average balance of total interest bearing checking and savings accounts. See below for a detailed explanation of changes by major deposit category:

•~~Time deposit~~s. Interest expense on total time deposits decreased $3.1 million, or 41.8%, in the three months ended March 31, 2022 compared to the same period in 2021. This was mainly due to a decline of $661.3 million, or 33.8%, in the average balance, including a decrease of $153.4 million in the average balance of international time deposits. In addition, there was a decline of 19 basis points in the average cost on time deposits. The decline in the average balance of total time deposits include decreases of $360.5 million, $212.7 million and $88.1 million, in customer certificate of deposits (“CDs”), brokered deposits and online deposits, respectively. The decline in customer CDs reflects the Company’s continued efforts to aggressively lower CD rates and focus on increasing core deposits and emphasizing multiproduct relationships versus single product higher-cost CDs.

•~~Interest bearing checking and savings accounts~~. Interest expense on checking and savings accounts decreased $0.1 million, or 5.3%, in the three months ended March 31, 2022 compared to the same period one year ago, mainly due to a decrease of 8 basis points in the average costs on money market deposits. This was partially offset by an increase of 4 basis points in the average costs on interest bearing demand deposit accounts. In addition, there was an increase of $321.8 million, or 11.4% in the average balance of total interest bearing checking and savings accounts in the three months ended March 31, 2022 compared to the same period in 2021, mainly driven by: (i) higher average domestic personal accounts, and (ii) an increase of $120.9 million, or 6.0%, in the average balance of international accounts, including increases of $76.8 million, or 4.5%, and $44.1 million, or 13.2%, in personal and commercial accounts, respectively. This increases in average balances were partially offset by a decline of $48.7 million in the average balance of third-party interest-bearing domestic brokered deposits in the three months ended March 31, 2022 compared the same period in 2021, as the Company continued to focus on reducing reliance on this source of funding.

Interest expense on FHLB advances decreased $0.3 million, or 10.0%, in the three months ended March 31, 2022 compared to the same period of 2021. This was mainly due to a decline of $133.0 million, or 12.7%, in the average balance on this funding source which includes the effect of the repayment of $235.0 million of FHLB advances in the second quarter of 2021. This was partially offset by an increase of 3 basis points in the average rate paid on these borrowings. In May 2021, the Company completed the restructuring of $285 million of its fixed-rate FHLB advances and incurred an early termination and modification penalty of $6.6 million which was deferred and is being amortized over the term of the new advances, as an adjustment to the yields. In the three months ended March 31, 2022, we recognized $0.5 million, included as part of interest expense resulting from this amortization. Additionally, in the three months ended March 31, 2022, ~~we repaid $180 million in short-term FHLB advances and borrowed $350.0 million in longer-term FHLB advances.~~ See “Item 7. Management’s Discussion and Analysis Of Financial Condition And Results Of Operations” included in the Form 10-K for more details on the $285 million FHLB advances restructuring completed in May 2021.

~~On March 9, 2022, the Company sold and issued $30.0 million aggregate principal amount of its 4.25% Fixed-to-Floating Rate Subordinated Notes due in March 15, 2032.~~ The Subordinated Notes will initially bear interest at a fixed rate of 4.25% per annum, from and including March 9, 2022, to but excluding March 15, 2027, with interest payable semi-annually in arrears. In the three months ended March 31, 2022, interest expense on these subordinated notes was $0.1 million. See “Capital Resources and Liquidity Management” in this Form 10-Q for more information on the Subordinated Notes.

6166

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 three ~~months~~month periods ended March 31, ~~2022~~2023 and ~~2021.~~2022. The average balances for loans include both performing and non-performing 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 March 31,
2022 2021
(in thousands, except percentages) Average
Balances Income/
Expense Yield/
Rates Average
Balances Income/
Expense Yield/
Rates
Interest-earning assets:
Loan portfolio, net (1)(2) $ 5,492,547 $ 56,338 4.16 % $ 5,678,547 $ 52,771 3.77 %
Debt securities available for sale (3) 1,170,491 7,378 2.56 % 1,207,764 6,495 2.18 %
Debt securities held to maturity (4) 114,655 703 2.49 % 67,729 302 1.81 %
Debt securities held for trading 35 1 11.59 % 104 1 3.90 %
Equity securities with readily determinable fair value not held for trading 1,301 — — % 24,225 84 1.41 %
Federal Reserve Bank and FHLB stock 51,505 546 4.30 % 63,781 625 3.97 %
Deposits with banks 259,225 132 0.21 % 205,355 51 0.10 %
Total interest-earning assets 7,089,759 65,098 3.72 % 7,247,505 60,329 3.38 %
Total non-interest-earning assets less allowance for loan losses 616,872 498,754
Total assets $ 7,706,631 $ 7,746,259


	Three Months Ended March 31,
	2023						2022
(in thousands, except percentages)	Average Balances		Income/ Expense		Yield/ Rates		Average Balances		Income/ Expense		Yield/ Rates
Interest-earning assets:
Loan portfolio, net (1)(2)	$	6,901,352	$	108,501	6.38	%	$	5,492,547	$	56,338	4.16	%
Debt securities available for sale (3) (4)	1,058,831		10,173		3.90	%	1,170,491		7,378		2.56	%
Debt securities held to maturity (5)	240,627		2,112		3.56	%	114,655		703		2.49	%
Debt securities held for trading	18		—		—	%	35		1		11.59	%
Equity securities with readily determinable fair value not held for trading	4,886		—		—	%	1,301		—		—	%
Federal Reserve Bank and FHLB stock	57,803		1,014		7.11	%	51,505		546		4.30	%
Deposits with banks	302,791		3,330		4.46	%	259,225		132		0.21	%
Total interest-earning assets	8,566,308		125,130		5.92	%	7,089,759		65,098		3.72	%
Total non-interest-earning assets (6)	739,522						616,872
Total assets	$	9,305,830					$	7,706,631

6267


		Three Months Ended March 31,															Three Months Ended March 31,
		2022							2021								2023							2022
(in thousands, except percentages)	(in thousands, except percentages)	Average Balances			Income/ Expense		Yield/ Rates		Average Balances			Income/ Expense		Yield/ Rates		(in thousands, except percentages)	Average Balances			Income/ Expense		Yield/ Rates		Average Balances			Income/ Expense		Yield/ Rates
Interest-bearing liabilities:	Interest-bearing liabilities:															Interest-bearing liabilities:
Checking and saving accounts -
Checking and saving accounts																Checking and saving accounts
Interest bearing DDA	Interest bearing DDA	$	1,556,480		$	290	0.08	%	$	1,258,301		$	113	0.04	%	Interest bearing DDA	$	2,342,620		$	12,855	2.23	%	$	1,556,480		$	290	0.08	%
Money market	Money market	1,253,293			734		0.24	%	1,236,026			966		0.32	%	Money market	1,333,465			7,881		2.40	%	1,253,293			734		0.24	%
Savings	Savings	325,121			11		0.01	%	318,800			14		0.02	%	Savings	299,501			46		0.06	%	325,121			11		0.01	%
Total checking and saving accounts	Total checking and saving accounts	3,134,894			1,035		0.13	%	2,813,127			1,093		0.16	%	Total checking and saving accounts	3,975,586			20,782		2.12	%	3,134,894			1,035		0.13	%
Time deposits	Time deposits	1,295,278			4,281		1.34	%	1,956,559			7,360		1.53	%	Time deposits	1,767,603			12,834		2.94	%	1,295,278			4,281		1.34	%
Total deposits	Total deposits	4,430,172			5,316		0.49	%	4,769,686			8,453		0.72	%	Total deposits	5,743,189			33,616		2.37	%	4,430,172			5,316		0.49	%

Advances from the FHLB and other borrowings (5)		917,039			2,481		1.10	%	1,050,000			2,758		1.07	%
Advances from the FHLB (7)																Advances from the FHLB (7)	959,392			6,763		2.86	%	917,039			2,481		1.10	%
Senior notes	Senior notes	58,934			942		6.48	%	58,618			942		6.52	%	Senior notes	59,250			942		6.45	%	58,934			942		6.48	%
Subordinated notes	Subordinated notes	7,451			88		4.79	%	—			—		—	%	Subordinated notes	29,306			361		5.00	%	7,451			88		4.79	%
Junior subordinated debentures	Junior subordinated debentures	64,178			626		3.96	%	64,178			607		3.84	%	Junior subordinated debentures	64,178			1,115		7.05	%	64,178			626		3.96	%
Total interest-bearing liabilities	Total interest-bearing liabilities	5,477,774			9,453		0.70	%	5,942,482			12,760		0.87	%	Total interest-bearing liabilities	6,855,315			42,797		2.53	%	5,477,774			9,453		0.70	%
Non-interest-bearing liabilities:	Non-interest-bearing liabilities:															Non-interest-bearing liabilities:
Non-interest bearing demand deposits		1,199,264							925,266
Non-interest-bearing demand deposits																Non-interest-bearing demand deposits	1,377,966							1,199,264
Accounts payable, accrued liabilities and other liabilities	Accounts payable, accrued liabilities and other liabilities	231,088							93,450							Accounts payable, accrued liabilities and other liabilities	338,351							231,088
Total non-interest-bearing liabilities	Total non-interest-bearing liabilities	1,430,352							1,018,716							Total non-interest-bearing liabilities	1,716,317							1,430,352
Total liabilities	Total liabilities	6,908,126							6,961,198							Total liabilities	8,571,632							6,908,126
Stockholders’ equity	Stockholders’ equity	798,505							785,061							Stockholders’ equity	734,198							798,505
Total liabilities and stockholders' equity	Total liabilities and stockholders' equity	$	7,706,631						$	7,746,259						Total liabilities and stockholders' equity	$	9,305,830						$	7,706,631
Excess of average interest-earning assets over average interest-bearing liabilities	Excess of average interest-earning assets over average interest-bearing liabilities	$	1,611,985						$	1,305,023						Excess of average interest-earning assets over average interest-bearing liabilities	$	1,710,993						$	1,611,985
Net interest income	Net interest income				$	55,645						$	47,569			Net interest income				$	82,333						$	55,645
Net interest rate spread	Net interest rate spread						3.02	%						2.51	%	Net interest rate spread						3.39	%						3.02	%
Net interest margin ~~(6)~~(8)	Net interest margin ~~(6)~~(8)						3.18	%						2.66	%	Net interest margin ~~(6)~~(8)						3.90	%						3.18	%
Cost of total deposits ~~(7)~~(9)	Cost of total deposits ~~(7)~~(9)						0.38	%						0.60	%	Cost of total deposits ~~(7)~~(9)						1.91	%						0.38	%
Ratio of average interest-earning assets to average interest-bearing liabilities	Ratio of average interest-earning assets to average interest-bearing liabilities	129.43		%					121.96		%					Ratio of average interest-earning assets to average interest-bearing liabilities	124.96		%					129.43		%
Average non-performing loans/ Average total loans	Average non-performing loans/ Average total loans	0.71		%					1.54		%					Average non-performing loans/ Average total loans	0.46		%					0.71		%


Florida		65-0032379
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
220 Alhambra Circle
Coral Gables,	Florida	33134
(Address of principal executive offices)		(Zip Code)
(305)		~~460-4038~~460-4728
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last ~~report: N/A)~~report)


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


Class						Outstanding as of April ~~28, 2022~~25, 2023
Class A Common Stock, $0.10 par value per share						~~34,194,664~~33,813,655 shares of Class A Common Stock


		Page
PART I.	FINANCIAL INFORMATION
Item 1	Financial Statements	3
	Consolidated Balance Sheets as of March 31, ~~2022~~2023 (Unaudited) and December 31, ~~2021~~2022	3
	Consolidated Statements of Operations and Comprehensive Income (Loss) ~~Income~~ for the three months ended March 31, ~~2022~~2023 and ~~2021~~2022 (Unaudited)	4
	Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, ~~2022~~2023 and ~~2021~~2022 (Unaudited)	6
	Consolidated Statements of Cash Flows for three months ended March 31, ~~2022~~2023 and ~~2021~~2022 (Unaudited)	7
	Notes to Interim Consolidated Financial Statements (Unaudited)	9

















Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4453
	Cautionary Notice Regarding Forward-Looking Statements	4453
	Overview	4856
	Results of Operations	5765
	Financial Condition	7181
Item 3	Quantitative and Qualitative Disclosures About Market Risk	93105
Item 4	Controls and Procedures	98108
PART II	OTHER INFORMATION
Item 1	Legal Proceedings	~~100~~110
Item 1A	Risk Factors	~~100~~110
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	~~102~~112
Item 3	Defaults Upon Senior Securities	~~102~~113
Item 4	Mine Safety Disclosures	~~102~~113
Item 5	Other Information	~~102~~113
Item 6	Exhibits	~~103~~114
	Signatures	~~104~~115


(in thousands, except share data)	(in thousands, except share data)	(Unaudited) March 31, 2022		December 31, 2021		(in thousands, except share data)	(Unaudited) March 31, 2023		December 31, 2022

Assets	Assets					Assets
Cash and due from banks	Cash and due from banks	$	35,242	$	33,668	Cash and due from banks	$	41,489	$	19,486
Interest earning deposits with banks	Interest earning deposits with banks	234,709		240,540		Interest earning deposits with banks	411,747		228,955
Restricted cash	Restricted cash	6,243		—		Restricted cash	32,541		42,160
Cash and cash equivalents	Cash and cash equivalents	276,194		274,208		Cash and cash equivalents	485,777		290,601
Securities	Securities					Securities
Debt securities available for sale		1,145,785		1,175,319
Debt securities held to maturity		112,008		118,175
Debt securities available for sale, at fair value						Debt securities available for sale, at fair value	1,045,883		1,057,621
Debt securities held to maturity, at amortized cost (estimated fair value of $218,388 and $217,609 at March 31, 2023 and December 31, 2022, respectively)						Debt securities held to maturity, at amortized cost (estimated fair value of $218,388 and $217,609 at March 31, 2023 and December 31, 2022, respectively)	239,258		242,101

Equity securities with readily determinable fair value not held for trading	Equity securities with readily determinable fair value not held for trading	13,370		252		Equity securities with readily determinable fair value not held for trading	—		11,383
Federal Reserve Bank and Federal Home Loan Bank stock	Federal Reserve Bank and Federal Home Loan Bank stock	53,806		47,495		Federal Reserve Bank and Federal Home Loan Bank stock	62,556		55,575
Securities	Securities	1,324,969		1,341,241		Securities	1,347,697		1,366,680
Loans held for sale, at lower of cost or fair value		68,591		143,195

Mortgage loans held for sale, at fair value	Mortgage loans held for sale, at fair value	17,108		14,905		Mortgage loans held for sale, at fair value	65,289		62,438
Loans held for investment, gross	Loans held for investment, gross	5,635,478		5,409,440		Loans held for investment, gross	7,049,746		6,857,194
Less: Allowance for loan losses		56,051		69,899
Less: Allowance for credit losses						Less: Allowance for credit losses	84,361		83,500
Loans held for investment, net	Loans held for investment, net	5,579,427		5,339,541		Loans held for investment, net	6,965,385		6,773,694
Bank owned life insurance	Bank owned life insurance	224,348		223,006		Bank owned life insurance	229,824		228,412
Premises and equipment, net	Premises and equipment, net	37,929		37,860		Premises and equipment, net	42,380		41,772
Deferred tax assets, net	Deferred tax assets, net	22,119		11,301		Deferred tax assets, net	46,112		48,703
Operating lease right-of-use assets	Operating lease right-of-use assets	139,477		141,139		Operating lease right-of-use assets	119,503		139,987
Goodwill	Goodwill	19,506		19,506		Goodwill	20,525		19,506
Accrued interest receivable and other assets	Accrued interest receivable and other assets	96,168		92,497		Accrued interest receivable and other assets	172,810		156,011
Total assets	Total assets	$	7,805,836	$	7,638,399	Total assets	$	9,495,302	$	9,127,804
Liabilities and Stockholders' Equity	Liabilities and Stockholders' Equity					Liabilities and Stockholders' Equity
Deposits	Deposits					Deposits
Demand	Demand					Demand
Noninterest bearing	Noninterest bearing	$	1,318,294	$	1,183,251	Noninterest bearing	$	1,360,626	$	1,367,664
Interest bearing	Interest bearing	1,543,708		1,507,441		Interest bearing	2,489,565		2,300,469
Savings and money market	Savings and money market	1,581,412		1,602,339		Savings and money market	1,507,195		1,647,811
Time	Time	1,248,287		1,337,840		Time	1,929,340		1,728,255
Total deposits	Total deposits	5,691,701		5,630,871		Total deposits	7,286,726		7,044,199
Advances from the Federal Home Loan Bank	Advances from the Federal Home Loan Bank	980,047		809,577		Advances from the Federal Home Loan Bank	1,052,012		906,486
Senior notes	Senior notes	58,973		58,894		Senior notes	59,289		59,210
Subordinated notes	Subordinated notes	29,156		—		Subordinated notes	29,326		29,284
Junior subordinated debentures held by trust subsidiaries	Junior subordinated debentures held by trust subsidiaries	64,178		64,178		Junior subordinated debentures held by trust subsidiaries	64,178		64,178
Operating lease liabilities	Operating lease liabilities	135,651		136,595		Operating lease liabilities	122,214		140,147
Accounts payable, accrued liabilities and other liabilities	Accounts payable, accrued liabilities and other liabilities	96,734		106,411		Accounts payable, accrued liabilities and other liabilities	152,501		178,574
Total liabilities	Total liabilities	7,056,440		6,806,526		Total liabilities	8,766,246		8,422,078
Contingencies (Note 17)		0		0
Contingencies (Note 16)						Contingencies (Note 16)

Stockholders’ equity	Stockholders’ equity					Stockholders’ equity
Class A common stock, $0.10 par value, 250 million shares authorized; 34,350,822 shares issued and outstanding (2021 - 35,883,320 shares issued and outstanding)		3,434		3,589
Class A common stock, $0.10 par value, 250 million shares authorized; 33,814,260 shares issued and outstanding at March 31, 2023 (33,815,161 shares issued and outstanding at December 31, 2022)						Class A common stock, $0.10 par value, 250 million shares authorized; 33,814,260 shares issued and outstanding at March 31, 2023 (33,815,161 shares issued and outstanding at December 31, 2022)	3,383		3,382

Additional paid in capital	Additional paid in capital	208,109		262,510		Additional paid in capital	194,782		194,694

Retained earnings	Retained earnings	565,963		553,167		Retained earnings	607,544		590,375
Accumulated other comprehensive (loss) income		(24,424)		15,217
Accumulated other comprehensive loss						Accumulated other comprehensive loss	(74,319)		(80,635)
Total stockholders' equity before noncontrolling interest	Total stockholders' equity before noncontrolling interest	753,082		834,483		Total stockholders' equity before noncontrolling interest	731,390		707,816
Noncontrolling interest	Noncontrolling interest	(3,686)		(2,610)		Noncontrolling interest	(2,334)		(2,090)
Total stockholders' equity	Total stockholders' equity	749,396		831,873		Total stockholders' equity	729,056		705,726
Total liabilities and stockholders' equity	Total liabilities and stockholders' equity	$	7,805,836	$	7,638,399	Total liabilities and stockholders' equity	$	9,495,302	$	9,127,804


	Three Months Ended March 31,
(in thousands, except per share data)	2022		2021

Other comprehensive loss, net of tax
Net unrealized holding losses on debt securities available for sale arising during the period	$	(39,637)	$	(9,466)
Net unrealized holding gains on cash flow hedges arising during the period	124		36
Reclassification adjustment for items included in net income	(128)		(2,325)
Other comprehensive loss	(39,641)		(11,755)
Comprehensive (loss) income	$	(23,691)	$	2,704

Earnings Per Share (Note 19):
Basic earnings per common share	$	0.46	$	0.38
Diluted earnings per common share	$	0.45	$	0.38


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

Balance at December 31, 2021		35,883,320		$	3,589																											$	831,873
Balance at December 31, 2022																																	Balance at December 31, 2022		33,815,161								$	3,382								$	194,694		$	—				$	590,375				$	(80,635)				$	707,816				$	(2,090)				$	705,726

Repurchase of Class A common stock	Repurchase of Class A common stock	(1,643,480)		—							—						(54,820)									—									—				(54,820)				—				(54,820)		Repurchase of Class A common stock		(22,403)								—									—					(566)					—					—		(566)	—	(566)
Treasury stock retired	Treasury stock retired	—		(165)							(54,655)			54,820			—					—								—				—				—			Treasury stock retired	—								(2)								(564)					566				—					—					—					—		—
Restricted stock issued	Restricted stock issued	104,762		10					(10)			—			—			—						—				—				—			Restricted stock issued		10,440								1									(1)			—					—				—					—					—					—
Restricted stock surrendered		(15,174)		(2)					(994)			—			—			—						(996)				—				(996)
Restricted stock, restricted stock units and performance stock units surrendered																																	Restricted stock, restricted stock units and performance stock units surrendered		(44,896)								(4)									(1,166)			—					—				—					(1,170)					—					(1,170)
Restricted stock forfeited	Restricted stock forfeited	(1,000)		—					—			—			—			—						—				—				—			Restricted stock forfeited		(1,394)								—									—			—					—				—					—					—					—
Performance stock units vested																																	Performance stock units vested		10,621								1									(1)			—					—				—					—					—					—
Restricted stock units vested	Restricted stock units vested	22,394		2					(2)			—			—			—					—					—				—			Restricted stock units vested		46,731								5									(5)			—					—				—					—					—					—
Stock-based compensation expense	Stock-based compensation expense	—		—					1,260			—			—			—					1,260					—				1,260			Stock-based compensation expense		—								—									1,825			—					—				—					1,825					—					1,825
Net income attributable to Amerant Bancorp Inc.	Net income attributable to Amerant Bancorp Inc.	—		—					—			—			15,950			—					15,950				—				15,950			Net income attributable to Amerant Bancorp Inc.		—								—									—			—					20,186				—					20,186					—					20,186
Dividends paid	Dividends paid	—		—					—			—			(3,154)			—					(3,154)				—				(3,154)			Dividends paid		—								—									—			—					(3,017)				—					(3,017)					—					(3,017)
Net loss attributable to noncontrolling-interest shareholders	Net loss attributable to noncontrolling-interest shareholders	—		—					—			—			—			—					—				(1,076)				(1,076)			Net loss attributable to noncontrolling-interest shareholders		—								—									—			—					—				—					—					(244)					(244)
Other comprehensive loss		—		—					—			—			—			(39,641)					(39,641)				—				(39,641)
Balance at March 31, 2022		34,350,822		$	3,434				$	208,109		$	—		$	565,963		$	(24,424)				$	753,082			$	(3,686)			$	749,396
Other comprehensive income																																	Other comprehensive income		—								—									—			—					—				6,316					6,316					—					6,316
Balance at March 31, 2023																																	Balance at March 31, 2023		33,814,260								$	3,383								$	194,782		$	—				$	607,544			$	(74,319)				$	731,390				$	(2,334)				$	729,056



(in thousands)	As Reported		As Recast (1)		Changes

Assets
Allowance for credit losses	$	56,051	$	75,450	$	19,399
Deferred tax assets, net	22,119		27,107		4,988
Liabilities
Accounts payable, accrued liabilities and other liabilities	96,734		96,766		32
Stockholder’s Equity
Retained earnings	565,963		551,520		(14,443)



(in thousands, except per share amounts)	As Reported		As Recast (1)		Changes

Total interest income	$	65,098	$	65,098	$	—
Total interest expense	9,453		9,453		—
Net interest income	55,645		55,645		—
Provision for credit losses	(10,000)		(9,275)		725
Net interest income after provision for credit losses	65,645		64,920		(725)
Total noninterest income	14,025		14,025		—
Total noninterest expense	60,818		60,818		—
Income before income taxes	18,852		18,127		(725)
Income tax expense	(3,978)		(3,824)		154
Net income before attribution of noncontrolling interest	14,874		14,303		(571)
Noncontrolling interest	(1,076)		(1,076)		—
Net income attributable to Amerant Bancorp Inc.	$	15,950	$	15,379	$	(571)
Basic earnings per common share	$	0.46	$	0.44	$	(0.02)
Diluted earnings per common share	$	0.45	$	0.44	$	(0.01)
Cash dividends declared per common share	$	0.09	$	0.09	$	—


	March 31, 2022
	Amortized Cost		Gross Unrealized				Estimated Fair Value
(in thousands)			Gains		Losses
U.S. government-sponsored enterprise debt securities	$	407,490	$	944	$	(14,033)	$	394,401
Corporate debt securities	365,730		1,994		(8,439)		359,285
U.S. government agency debt securities	401,270		414		(18,147)		383,537

Collateralized loan obligations	5,000		—		—		5,000
Municipal bonds	2,062		3		(3)		2,062
U.S. treasury securities	1,500		—		—		1,500

Total debt securities available for sale (1)	$	1,183,052	$	3,355	$	(40,622)	$	1,145,785


	March 31, 2023
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Estimated Fair Value
(in thousands)			Gains		Losses
U.S. government-sponsored enterprise debt securities (1) (2)	$	470,468	$	1,492	$	(36,971)	$	—	$	434,989
Corporate debt securities (2)	296,813		—		(28,546)		—		268,267
U.S. government agency debt securities (1) (2)	370,791		58		(38,678)		—		332,171

Collateralized loan obligations	5,000		—		(155)		—		4,845
Municipal bonds (1)	1,732		—		(59)		—		1,673
U.S. treasury securities	3,930		8		—		—		3,938

Total debt securities available for sale (3)	$	1,148,734	$	1,558	$	(104,409)	$	—	$	1,045,883


	March 31, 2022
	Less Than 12 Months					12 Months or More					Total
(in thousands, except securities count)	Number of Securities	Estimated Fair Value		Unrealized Loss		Number of Securities	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
U.S. government-sponsored enterprise debt securities	162	$	320,537	$	(10,917)	61	$	30,500	$	(3,116)	$	351,037	$	(14,033)
Corporate debt securities	39	196,600		(7,605)		3	10,124		(834)		206,724		(8,439)
U.S. government agency debt securities	67	319,930		(16,999)		74	46,956		(1,148)		366,886		(18,147)
Municipal bonds	1	426		(3)		—	—		—		426		(3)


	269	$	837,493	$	(35,524)	138	$	87,580	$	(5,098)	$	925,073	$	(40,622)


		Available for Sale				Held to Maturity					Available for Sale				Held to Maturity
(in thousands)	(in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value		(in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Within 1 year	Within 1 year	$	25,333	$	25,432	$	—	$	—	Within 1 year	$	11,199	$	11,195	$	—	$	—
After 1 year through 5 years	After 1 year through 5 years	100,274		99,454		8,101		7,732		After 1 year through 5 years	109,477		104,004		6,521		4,076
After 5 years through 10 years	After 5 years through 10 years	312,215		306,855		11,130		10,785		After 5 years through 10 years	239,698		216,047		13,023		12,495
After 10 years	After 10 years	745,230		714,044		92,777		87,019		After 10 years	788,360		714,637		219,714		201,817

		$	1,183,052	$	1,145,785	$	112,008	$	105,536		$	1,148,734	$	1,045,883	$	239,258	$	218,388


(in thousands)	(in thousands)	March 31, 2022		December 31, 2021		(in thousands)	March 31, 2023		December 31, 2022
Real estate loans	Real estate loans					Real estate loans
Commercial real estate	Commercial real estate					Commercial real estate
Non-owner occupied	Non-owner occupied	$	1,570,006	$	1,540,590	Non-owner occupied	$	1,630,451	$	1,615,716
Multi-family residential	Multi-family residential	540,726		514,679		Multi-family residential	796,125		820,023
Land development and construction loans	Land development and construction loans	296,609		327,246		Land development and construction loans	303,268		273,174
		2,407,341		2,382,515			2,729,844		2,708,913
Single-family residential	Single-family residential	707,594		661,339		Single-family residential	1,189,045		1,102,845
Owner occupied	Owner occupied	927,921		962,538		Owner occupied	1,069,491		1,046,450
		4,042,856		4,006,392			4,988,380		4,858,208
Commercial loans(1)	Commercial loans(1)	1,093,205		965,673		Commercial loans(1)	1,497,649		1,381,234
Loans to financial institutions and acceptances	Loans to financial institutions and acceptances	13,730		13,710		Loans to financial institutions and acceptances	13,312		13,292
Consumer loans and overdrafts	Consumer loans and overdrafts	485,687		423,665		Consumer loans and overdrafts	550,405		604,460
Total loans held for investment		$	5,635,478	$	5,409,440
Total loans held for investment, gross (2)						Total loans held for investment, gross (2)	$	7,049,746	$	6,857,194


		March 31, 2022																		March 31, 2023
		Total Loans, Net of Unearned Income				Past Due								Total Loans in Nonaccrual Status			Total Loans 90 Days or More Past Due and Accruing			Total Loans, Net of Unearned Income					Past Due
(in thousands)	(in thousands)			Current		30-59 Days		60-89 Days		Greater than 90 Days		Total Past Due				(in thousands)			Current				30-59 Days		60-89 Days		Greater than 90 Days		Total Past Due
Real estate loans	Real estate loans																					Real estate loans
Commercial real estate	Commercial real estate																		Commercial real estate
Non-owner occupied	Non-owner occupied	$	1,570,006	$	1,570,006	$	—	$	—	$	—	$	—	$	12,825		$	—	Non-owner occupied	$	1,630,451		$	1,630,451	$	—	$	—	$	—	$	—
Multi-family residential	Multi-family residential	540,726		540,726		—		—		—		—		—			—		Multi-family residential	796,125			795,885		240		—		—		240
Land development and construction loans	Land development and construction loans	296,609		296,609		—		—		—		—		—			—		Land development and construction loans	303,268			303,268		—		—		—		—
		2,407,341		2,407,341		—		—		—		—		12,825			—			2,729,844			2,729,604		240		—		—		240
Single-family residential	Single-family residential	707,594		703,003		2,743		436		1,412		4,591		3,717			—		Single-family residential	1,189,045			1,182,147		6,205		—		693		6,898
Owner occupied	Owner occupied	927,921		926,118		145		263		1,395		1,803		10,770			—		Owner occupied	1,069,491			1,064,377		4,841		—		273		5,114
		4,042,856		4,036,462		2,888		699		2,807		6,394		27,312			—			4,988,380			4,976,128		11,286		—		966		12,252
Commercial loans	Commercial loans	1,093,205		1,080,403		995		338		11,469		12,802		19,178			—		Commercial loans	1,497,649			1,486,516		380		196		10,557		11,133
Loans to financial institutions and acceptances	Loans to financial institutions and acceptances	13,730		13,730		—		—		—		—		—			—		Loans to financial institutions and acceptances	13,312			13,312		—		—		—		—
Consumer loans and overdrafts	Consumer loans and overdrafts	485,687		485,656		16		—		15		31		468			10		Consumer loans and overdrafts	550,405			550,176		168		8		53		229
		$	5,635,478	$	5,616,251	$	3,899	$	1,037	$	14,291	$	19,227	$	46,958		$	10		$	7,049,746		$	7,026,132	$	11,834	$	204	$	11,576	$	23,614


	As of March 31, 2023
(in thousands)	Nonaccrual Loans With No Related Allowance		Nonaccrual Loans With Related Allowance		Total Nonaccrual Loans (1)		Loans Past Due Over 90 Days and Still Accruing
Real estate loans
Commercial real estate
Nonowner occupied	$	—	$	—	$	—	$	—
Multi-family residential	—		—		$	—	—


Single-family residential	—		1,367		$	1,367	—
Owner occupied	6,847		271		7,118		—
	6,847		1,638		$	8,485	—
Commercial loans	471		13,172		$	13,643	—

Consumer loans and overdrafts	1		—		1		53
Total	$	7,319	$	14,810	$	22,129	$	53


	As of December 31, 2022
(in thousands)	Nonaccrual Loans With No Related Allowance		Nonaccrual Loans With Related Allowance		Total Nonaccrual Loans (1)		Loans Past Due Over 90 Days and Still Accruing
Real estate loans
Commercial real estate
Nonowner occupied	$	20,057	$	—	$	20,057	$	—
Multi-family residential	—		—		—		—


Single-family residential	—		1,526		1,526		253
Owner occupied	5,936		334		6,270		—
	25,993		1,860		27,853		253
Commercial loans	482		8,789		9,271		183

Consumer loans and overdrafts	—		4		4		35
Total	$	26,475	$	10,653	$	37,128	$	471


		Three Months Ended March 31, 2022											Three Months Ended March 31, 2023
(in thousands)	(in thousands)	Real Estate		Commercial		Financial Institutions		Consumer and Others		Total		(in thousands)	Real Estate		Commercial		Financial Institutions		Consumer and Others		Total
Balance at beginning of the period	Balance at beginning of the period	$	17,952	$	38,979	$	42	$	12,926	$	69,899	Balance at beginning of the period	$	25,237	$	25,888	$	—	$	32,375	$	83,500
Reversal of loan losses		(5,594)		(2,585)		(1)		(1,820)		(10,000)
Provision for (reversal of) credit losses												Provision for (reversal of) credit losses	(2,181)		9,401		—		4,480		11,700
Loans charged-off	Loans charged-off											Loans charged-off	—		(7,975)		—		(6,354)		(14,329)
Domestic		—		(3,275)		—		(1,043)		(4,318)
International		—		—		—		(4)		(4)
Recoveries	Recoveries	4		300		—		170		474		Recoveries	139		3,333		—		18		3,490
Balance at end of the period	Balance at end of the period	$	12,362	$	33,419	$	41	$	10,229	$	56,051	Balance at end of the period	$	23,195	$	30,647	$	—	$	30,519	$	84,361



Allowance for loan losses by impairment methodology:
Individually evaluated	$	477	$	6,021	$	—	$	718	$	7,216
Collectively evaluated	11,885		27,398		41		9,511		48,835
	$	12,362	$	33,419	$	41	$	10,229	$	56,051
Investment in loans, net of unearned income:
Individually evaluated	$	12,825	$	32,500	$	—	$	4,427	$	49,752
Collectively evaluated	2,362,355		2,184,495		13,730		1,025,146		5,585,726
	$	2,375,180	$	2,216,995	$	13,730	$	1,029,573	$	5,635,478


	Three Months Ended March 31, 2022
	Recast (1)
(in thousands)	Real Estate		Commercial		Financial Institutions		Consumer and Others		Total
Balance at beginning of the period	$	17,952	$	38,979	$	42	$	12,926	$	69,899
Cumulative effect of adoption of accounting principle (1)	17,418		(8,281)		(42)		9,579		18,674
Reversal of (provision for) credit losses (1)	(10,347)		(2,644)		—		3,716		(9,275)
Loans charged-off	—		(3,275)		—		(1,047)		(4,322)
Recoveries	4		300		—		170		474
Balance at end of the period (1)	$	25,027	$	25,079	$	—	$	25,344	$	75,450


	Three Months Ended March 31, 2021
(in thousands)	Real Estate		Commercial		Financial Institutions		Consumer and Others		Total
Balance at beginning of the period	$	50,227	$	48,130	$	1	$	12,544	$	110,902
Provision for loan losses	(1,936)		702		—		1,234		—
Loans charged-off
Domestic	—		(235)		—		(431)		(666)
International	—		—		—		—		—
Recoveries	—		605		—		99		704
Balance at end of the period	$	48,291	$	49,202	$	1	$	13,446	$	110,940



Allowance for loan losses by impairment methodology:
Individually evaluated	$	2,918	$	26,665	$	—	$	1,077	$	30,660
Collectively evaluated	45,373		22,537		1		12,369		80,280
	$	48,291	$	49,202	$	1	$	13,446	$	110,940
Investment in loans, net of unearned income:
Individually evaluated	$	19,892	$	60,891	$	—	$	8,261	$	89,044
Collectively evaluated	2,742,923		2,154,463		18,073		749,291		5,664,750
	$	2,762,815	$	2,215,354	$	18,073	$	757,552	$	5,753,794


Three Months Ended March 31, (in thousands)	Real Estate		Commercial		Financial Institutions		Consumer and others		Total
2022	$	—	$	—	$	—	$	1,313	$	1,313
2021	$	—	$	—	$	—	$	1,173	$	1,173


	March 31, 2022
	Recorded Investment
(in thousands)	With a Valuation Allowance		Without a Valuation Allowance		Total		Year Average (1)		Total Unpaid Principal Balance		Valuation Allowance
Real estate loans
Commercial real estate
Non-owner occupied	$	1,360	$	11,465	$	12,825	$	24,260	$	12,887	$	477
Multi-family residential	—		—		—		2,482		—		—
Land development and construction loans	—		—		—		—		—		—
	1,360		11,465		12,825		26,742		12,887		477
Single-family residential	2,267		1,694		3,961		5,842		3,917		413
Owner occupied	406		10,363		10,769		10,438		10,621		137
	4,033		23,522		27,555		43,022		27,425		1,027
Commercial loans	10,410		11,321		21,731		34,737		25,023		5,884
Consumer loans and overdrafts	466		—		466		318		467		305
	$	14,909	$	34,843	$	49,752	$	78,077	$	52,915	$	7,216


Three Months Ended March 31, (in thousands)	Real Estate		Commercial		Financial Institutions		Consumer and others		Total
2023	$	10,000	$	—	$	—	$	—	$	10,000
2022	$	—	$	—	$	—	$	1,313	$	1,313


	As of March 31, 2022			As of December 31, 2021
(in thousands)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Real estate loans
Commercial real estate
Non-owner occupied	1	$	1,360	1	$	1,452



Single-family residential	1	268		1	258
Owner occupied	4	6,071		4	6,213
	6	7,699		6	7,923
Commercial loans	11	4,505		11	5,005

Total (1)(2)	17	$	12,204	17	$	12,928


	March 31, 2022
	Credit Risk Rating
	Nonclassified				Classified
(in thousands)	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Real estate loans
Commercial real estate
Non-owner occupied	$	1,553,960	$	3,221	$	11,522	$	1,303	$	—	$	1,570,006
Multi-family residential	540,726		—		—		—		—		540,726
Land development and construction loans	296,609		—		—		—		—		296,609
	2,391,295		3,221		11,522		1,303		—		2,407,341
Single-family residential	703,782		—		3,812		—		—		707,594
Owner occupied	909,676		7,383		10,862		—		—		927,921
	4,004,753		10,604		26,196		1,303		—		4,042,856
Commercial loans	1,047,152		25,545		18,519		1,989		—		1,093,205
Loans to financial institutions and acceptances	13,730		—		—		—		—		13,730
Consumer loans and overdrafts	485,219		—		468		—		—		485,687
	$	5,550,854	$	36,149	$	45,183	$	3,292	$	—	$	5,635,478


	March 31, 2023
	Term Loans
	Amortized Cost Basis by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Real estate loans
Commercial real estate
Nonowner occupied
Credit Risk Rating:
Nonclassified
Pass	$	36,408	$	195,667	$	628,200	$	34,329	$	91,426	$	412,601	$	223,485	$	1,622,116
Special Mention	—		—		—		—		—		8,335		—		8,335
Classified
Substandard	—		—		—				—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Nonowner occupied	36,408		195,667		628,200		34,329		91,426		420,936		223,485		1,630,451

Multi-family residential
Credit Risk Rating:
Nonclassified
Pass	1,528		67,799		110,320		26,857		117,828		126,672		320,773		771,777
Special Mention	—		—		—		—		—		24,348		—		24,348
Classified
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Multi-family residential	1,528		67,799		110,320		26,857		117,828		151,020		320,773		796,125

Land development and construction loans
Credit Risk Rating:
Nonclassified
Pass	3,647		9,433		27,755		23,465		179		26,930		211,859		303,268
Special Mention	—		—		—		—		—		—		—		—
Classified
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total land development and construction loans	3,647		9,433		27,755		23,465		179		26,930		211,859		303,268

Single-family residential
Credit Risk Rating:
Nonclassified
Pass	95,779		470,813		184,067		69,512		21,350		78,397		267,613		1,187,531
Special Mention	—		—		—		—		—		—		—		—
Classified
Substandard	—		—		—		—		—		966		548		1,514
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total Single-family residential	95,779		470,813		184,067		69,512		21,350		79,363		268,161		1,189,045

Owner occupied
Credit Risk Rating:
Nonclassified
Pass	52,708		254,789		458,037		22,135		63,220		181,220		30,180		1,062,289
Special Mention	—		—		—		—		—		—		—		—
Classified
Substandard			2,040		2,873		625				1,664				7,202
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total owner occupied	52,708		256,829		460,910		22,760		63,220		182,884		30,180		1,069,491


	March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Non-real estate loans
Commercial Loans
Credit Risk Rating:
Nonclassified
Pass	122,185		376,984		87,033		16,303		41,708		44,224		791,078		1,479,515
Special Mention	—		—		—		1,543				1,447		250		3,240
Classified
Substandard	—		24		9		262		184		959		13,453		14,891
Doubtful	—		—		—				3		—		—		3
Loss	—		—		—		—		—		—		—		—
Total commercial Loans	122,185		377,008		87,042		18,108		41,895		46,630		804,781		1,497,649

Loans to financial institutions and acceptances
Credit Risk Rating:
Nonclassified
Pass	—		—		—		—		—		13,312		—		13,312
Special Mention	—		—		—		—		—		—		—		—
Classified
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total loans to financial institutions and acceptances	—		—		—		—		—		13,312		—		13,312

Consumer loans
Credit Risk Rating:
Nonclassified
Pass	6,850		47,625		135,014		240,930		57		38		119,890		550,404
Special Mention	—		—		—		—		—		—		—		—
Classified
Substandard					—		—		—		1		—		1
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total consumer loans	6,850		47,625		135,014		240,930		57		39		119,890		550,405
Total loans held for investment, gross	$	319,105	$	1,425,174	$	1,633,308	$	435,961	$	335,955	$	921,114	$	1,979,129	$	7,049,746


	Three Months Ended March 31, 2023
	Term Loans Charge-offs by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Charge-Offs		Total
Year-To-Date Gross Charge-offs
Real estate loans
Commercial real estate
Nonowner occupied	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Multi-family residential	—		—		—		—		—		—		—		—
Land development and construction loans	—		—		—		—		—		—		—		—
	—		—		—		—		—		—		—		—
Single-family residential	—		—		—		—		—		32		—		32
Owner occupied	—		—		—		—		—		—		—		—
	—		—		—		—		—		32		—		32
Commercial loans			7,558		93		—		—		324		—		7,975
Loans to financial institutions and acceptances	—		—		—		—		—		—		—		—
Consumer loans and overdrafts	—		2,890		2,879		293		—		260		—		6,322
Total Year-To-Date Gross Charge-Offs	$	—	$	10,448	$	2,972	$	293	$	—	$	616	$	—	$	14,329


	As of March 31, 2023
	Collateral Type
(in thousands)	Commercial Real Estate		Residential Real Estate		Other		Total		Specific Reserves
Real estate loans






Owner occupied (1)	$	6,845	$	—	$	—	$	6,845	$	—

Commercial loans (2)	1,998		—		11,080		13,078		5,787


Total	$	8,843	$	—	$	11,080	$	19,923	$	5,787


				Outstanding Balance							Outstanding Balance
Year of Maturity	Year of Maturity	Interest Rate	Interest Rate Type	At March 31, 2022		At December 31, 2021		Year of Maturity	Interest Rate	Interest Rate Type	At March 31, 2023		At December 31, 2022
				(in thousands)							(in thousands)

2023								2023	5.07%	Variable	$	30,000	$	—
2023	2023	0.62% to 1.06%	Fixed	104,441		104,317		2023	0.61% to 4.84%	Fixed	—		304,821
2024	2024	1.68%	Fixed	100,000		—		2024	1.68%	Fixed	—		100,000
2025 and after (1)		0.62% to 1.82%	Fixed	775,606		705,260
2025								2025	1.40% to 3.07%	Fixed	352,012		451,665
				$	980,047	$	809,577
2027 and after (1)								2027 and after (1)	1.82% to 4.40%	Fixed	670,000		50,000
											$	1,052,012	$	906,486


	Three Months Ended for March 31,
	2023		2022
(in thousands, except weighted average data)
Cash paid for amounts included in the measurement of operating lease liabilities	4,077		3,640

Weighted average remaining lease term for operating leases	17.7 years		19.0 years
Weighted average discount rate for operating leases	9.71	%	5.93	%


	March 31, 2022		March 31, 2021
(in thousands, except weighted average data)
Cash paid for amounts included in the measurement of operating lease liabilities	3,640		1,765
Operating lease right-of-use asset obtained in exchange for operating lease liability	1,594		1,044
Weighted average remaining lease term for operating leases	19.0 years		21.0 years
Weighted average discount rate for operating leases	5.93	%	5.72	%


(in thousands)
For the remaining nine months of 2023	$	10,532
2024	14,206
2025	14,297
2026	14,515
2027	14,814
Thereafter	201,086
Total minimum payments required	269,450
Less: implied interest	(144,029)
Total lease obligations	$	125,421