The Company and the Bank are subject to various regulatory requirements administered by federal banking agencies. Amerant Mortgage is an approved Fannie Mae seller and servicer and is subject to certain Lender Adjusted Net Worth requirements. The following is a summary of restrictions related to dividend payments, and capital adequacy as well as Lender Adjusted Net Worth requirement.

Dividends payable by the Bank as a national bank subsidiary of the Company, are limited by law and Office of the Comptroller of the Currency (“OCC”) regulations. A dividend may not be paid if the total of all dividends declared by a bank in any calendar year is in excess of the current year’s net income combined with the retained net income of the two preceding years, unless the national bank obtains the approval of the OCC. At December 31, 2021 and 2020, the Bank could have paid dividends of $97.0 million and $17.6 million, respectively, without prior OCC approval.

In addition, the Company and the Bank are subject to various general regulatory policies and requirements relating to the payment of dividends, including requirements to maintain capital above regulatory minimums and the maintenance of capital in excess of capital conservation buffers required by the Federal Reserve and OCC capital regulations.

Under the Basel III capital and prompt corrective action rules, the Company and the Bank must meet specific capital guidelines that involve quantitative measures and qualitative judgments about capital components, risk weightings, and other factors.

The Basel III rules became effective for the Company and the Bank on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule and were fully phased in by January 1, 2019. The Company and the Bank opted to not include the AOCI in computing regulatory capital. As of December 31, 2021, management believes that the Company and the Bank meet all capital adequacy requirements to which they are subject, and are well capitalized. In addition, Basel III rules required the Company and the Bank to hold a minimum capital conservation buffer of 2.50% by 2019. The Company’s capital conservation buffer at year end 2021 and 2020 was 6.6% and 6.0%, respectively, and therefore no regulatory restrictions exist under the applicable capital rules on dividends or discretionary bonuses or other payments.

Amerant Mortgage is currently an approved seller and servicer with Fannie Mae for the purpose of selling Fannie Mae eligible loan production and retaining the MSRs of those same loans. As an approved Fannie Mae seller and servicer, Amerant Mortgage must meet certain net worth covenants outlined in Maintaining Seller/Servicer Eligibility section of the Fannie Mae Selling Guide, the “Selling Guide”.

Under the Selling Guide, Amerant Mortgage must meet a minimum net worth requirement of $2.5 million plus 0.25% of the outstanding unpaid principal balance of the portfolio of loans Amerant Mortgage is contractually obligated to service for Fannie Mae (the “Lender Adjusted Net Worth”). As of December 31, 2021, Amerant Mortgage had a Lender Adjusted Net Worth of approximately $4.5 million and was in compliance with requirement. In addition, Amerant Mortgage is subject to net worth decline tolerance requirements that shall not exceed 25% over one quarter or 40% over two consecutive quarters. Amerant Mortgage had a decline in its Lender Adjusted Net Worth of more than 40% over two-consecutive quarterly reporting periods as of December 31, 2021. Amerant Mortgage expects to demonstrate compliance with all financial eligibility requirements by April 30, 2022.

Failure to meet the minimum net worth or net worth decline tolerance outlined above, may prompt the suspension of Amerant Mortgage as an approved seller and/or servicer, which would prevent Amerant Mortage from taking down new commitments to deliver loans to Fannie Mae and adding loans to any portfolio that Amerant Mortgage services for Fannie Mae. While Amerant Mortage is not required to operate as an approved Fannie Mae seller and servicer, failure to operate as such may impact Amerant Mortgage’s overall margins, profitability and financial flexibility.


	Actual				Minimums Required for Capital Adequacy Purposes				Regulatory Minimums to be Well Capitalized
(in thousands, except percentages)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2021
Total capital ratio	$	957,852	14.94	%	$	512,780	8.00	%	$	640,976	10.00	%
Tier 1 capital ratio	886,301		13.83	%	384,585		6.00	%	512,780		8.00	%
Tier 1 leverage ratio	886,301		11.84	%	299,466		4.00	%	374,332		5.00	%
Common equity tier 1 (CET1) capital ratio	886,301		13.83	%	288,439		4.50	%	416,634		6.50	%

December 31, 2020
Total capital ratio	$	873,152	13.91	%	$	502,214	8.00	%	$	627,768	10.00	%
Tier 1 capital ratio	794,257		12.65	%	376,661		6.00	%	502,214		8.00	%
Tier 1 leverage ratio	794,257		10.07	%	315,569		4.00	%	394,461		5.00	%
CET1 capital ratio	794,257		12.65	%	282,495		4.50	%	408,049		6.50	%


	Actual				Minimums Required for Capital Adequacy Purposes				Regulatory Minimums To be Well Capitalized
(in thousands, except percentages)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2021
Total capital ratio	$	934,512	14.56	%	$	513,394	8.00	%	$	641,742	10.00	%
Tier 1 capital ratio	862,962		13.45	%	385,045		6.00	%	513,394		8.00	%
Tier 1 leverage ratio	862,962		11.52	%	299,746		4.00	%	374,683		5.00	%
CET1 capital ratio	801,907		12.50	%	288,784		4.50	%	417,133		6.50	%

December 31, 2020
Total capital ratio	$	876,966	13.96 %		$	502,463	8.00	%	$	628,078	10.00	%
Tier 1 capital ratio	798,033		12.71 %		376,847		6.00	%	502,463		8.00	%
Tier 1 leverage ratio	798,033		10.11 %		315,770		4.00	%	394,713		5.00	%
CET1 capital ratio	736,930		11.73 %		282,635		4.50	%	408,251		6.50	%

The Company redeemed trust preferred securities and related junior subordinated debentures which reduced the Company’s regulatory capital by $24.7 million in 2020. The Company’s regulatory capital ratios continued to exceed regulatory minimums to be well capitalized, upon these redemptions.