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AMERANT Amerant Reports Second Quarter 2021 Net Income of $ 16.0 Million , Diluted Earnings Per Share of $ 0.42 July 21 , 2021 Results include key actions taken to improve ongoing profitability CORAL GABLES , Fla . , July 21 , 2021 ( GLOBE NEWSWIRE ) -- Amerant Bancorp Inc. ( NASDAQ : AMTB and AMTBB ) ( the " Company " or " Amerant " ) today reported net income attributable to the Company of $ 16.0 million in the second quarter of 2021 , or $ 0.42 per diluted share , compared to net income attributable to the Company of $ 14.5 million , or $ 0.38 per diluted share , in the first quarter of 2021 and net loss attributable to the Company of $ 15.3 million , or $ 0.37 per diluted share , in the second quarter of 2020. Pre - provision net revenue ( " PPNR " ) ( non - GAAP ) was $ 15.4 million in the second quarter of 2021 , a decrease from $ 18.1 million in the first quarter of 2021 , and a decrease from $ 29.3 million in the second quarter of 2020. Core pre - provision net revenue ( " Core PPNR " ) ( non - GAAP ) was $ 16.9 million in the second quarter of 2021 , an increase from $ 15.8 million in the first quarter of 2021 , and a decrease from $ 23.0 million in the second quarter of 2020. Second quarter of 2020 included $ 7.8 million in deferred expenses directly related to the origination of PPP loans . Annualized return on assets ( " ROA " ) and return on equity ( " ROE " ) were 0.83 % and 8.11 % , respectively , in the second quarter of 2021 , compared to 0.76 % and 7.47 % , respectively , in the first quarter of 2021. Second quarter of 2020 ROA and ROE were negative 0.75 % and 7.21 % , respectively . Jerry Plush , vice chairman and CEO said , " We are pleased to report improved results this quarter , even while taking a number of important actions to lower future funding costs and operating expenses . We are excited about the fintech partnerships we recently announced , as well as our new marketing agency partner . We believe these partnerships will help us drive greater brand recognition and profitable growth , leading to further improvement in operating results in the coming quarters . " Summary Results Results of the second quarter ended June 30 , 2021 were as follows : • Net income was $ 16.0 million in the second quarter of 2021 , up 10.4 % from $ 14.5 million in the first quarter of 2021. In the second quarter of 2020 there was a net loss of $ 15.3 million . Core net income ( non - GAAP ) was $ 17.2 million in the second quarter of 2021 compared to core net income of $ 12.6 million in the first quarter of 2021 and core net loss ( non - GAAP ) of $ 20.3 million in the second quarter of 2020 . • Net Interest Income ( " NII " ) was $ 50.0 million , up 5.1 % from $ 47.6 million in the first quarter of 2021 , and up 7.9 % from $ 46.3 million in the second quarter of 2020. Net interest margin ( " NIM " ) was 2.81 % in the second quarter of 2021 , up 15 basis points from 2.66 % in the first quarter of 2021 and up 37 basis points from 2.44 % in the second quarter of 2020 . • A release of $ 5.0 million from the allowance for loan losses was recorded during the second quarter of 2021 , compared to a $ 48.6 million provision recorded in the second quarter of 2020. No provision for loan losses was recorded during the first quarter of 2021. The ratio of allowance for loan losses ( " ALL " ) to total loans was 1.86 % as of June 30 , 2021 , down from 1.93 % as of March 31 , 2021 and down from 2.04 % as of June 30 , 2020. The ratio of net charge - offs to average total loans in the second quarter of 2021 was 0.12 % compared to 0.13 % in the second quarter of 2020. There were no net charge offs recorded in the first quarter of 2021 . • Noninterest income was $ 15.7 million in the second quarter of 2021 , up 11.1 % from $ 14.2 million in the first quarter of 2021 , and down 20.4 % from $ 19.8 million in the second quarter of 2020 , as second quarter of 2020 included higher net gains on sale of securities . • Noninterest expense was $ 51.1 million , up 17.2 % from $ 43.6 million in the first quarter of 2021 , and up 39.2 % from $ 36.7 million in the second quarter of 2020 , as second quarter of 2021 included higher nonrecurring charges . • The efficiency ratio was 77.8 % in the second quarter of 2021 , compared to 70.7 % in the first quarter of 2021 , and 55.6 % for the second quarter of 2020. Core efficiency ratio ( non - GAAP ) was 74.45 % in the second quarter of 2021 , compared to 73.35 % in the first quarter of 2021 , and 60.65 % for the second quarter of 2020 . • Total loans were $ 5.6 billion at June 30 , 2021 , down $ 146.3 million , or 2.5 % , compared to March 31 , 2021. Total deposits were $ 5.7 billion at June 30 , 2021 , slightly down $ 3.2 million , or 0.1 % , compared to March 31 , 2021 . • Stockholders ' book value per common share attributable to the Company increased to $ 21.27 at June 30 , 2021 , compared to $ 20.70 at March 31 , 2021. Tangible book value per common share ( " TBV " ) ( non - GAAP ) increased to $ 20.69 as of June 30 , 2021 , compared to $ 20.13 at March 31 , 2021 . Credit Quality The ALL was $ 104.2 million as of the close of the second quarter of 2021 , compared to $ 110.9 million at the close of the first quarter of 2021 and $ 119.7 million at the close of the second quarter of 2020. The Company released $ 5.0 million from the allowance for loan losses in the second quarter of 2021 , compared to a $ 48.6 million provision for loan losses in the second quarter of 2020. No provision for loan losses was recorded during the first quarter of 2021. The reserve release during the second quarter of 2021 was primarily attributed to the improving macro - economic conditions and credit outlook , as the Florida and Texas economies continue to recover from the pandemic . The decrease in loan portfolio outstanding balance when compared to the first quarter of 2021 , also contributed to lower reserve requirements . Offsetting the release were loan downgrades and additional reserves allocated in connection with the COVID - 19 pandemic , primarily due to slower economic recovery of the New York market . The ALL associated with the pandemic was $ 14.8 million in the second quarter , compared to $ 10.5 million in the first quarter of 2021 , and $ 32.9 million in the second quarter of 2020 at the onset of the pandemic . Classified loans totaled $ 122.6 million at the end of the second quarter of 2021 compared to $ 91.3 million and $ 87.6 million in the first quarter of 2021 and second quarter of 2020 , respectively . These loans increased $ 31.3 million , or 34.3 % , compared to the first quarter of 2021 and $ 35.1 million , or 40.1 % , compared to the second quarter of 2020. The quarter - over - quarter increases were primarily driven by the downgrade of three Commercial Real Estate ( " CRE " ) loans totaling $ 40.0 million , primarily in New York due to increased vacancies , and one commercial loan totaling $ 2.7 million . These increases were partially offset by upgrades of three loans