Loans

12 Months Ended

Dec. 31, 2022

a) Loans held for investment

Loans held for investment consist of the following loan classes:


(in thousands)	December 31, 2022		December 31, 2021
Real estate loans
Commercial real estate
Nonowner occupied	$	1,615,716	$	1,540,590
Multi-family residential	820,023		514,679
Land development and construction loans	273,174		327,246
	2,708,913		2,382,515
Single-family residential	1,102,845		661,339
Owner occupied	1,046,450		962,538
	4,858,208		4,006,392
Commercial loans	1,381,234		965,673
Loans to financial institutions and acceptances	13,292		13,710
Consumer loans and overdrafts	604,460		423,665
Total loans held for investment, gross (1)	$	6,857,194	$	5,409,440

_________________

(1)Excludes accrued interest receivable.

Real estate loans include commercial loans secured by real estate properties. Commercial loans secured by non-owner occupied real estate properties are generally granted to finance the acquisition or operation of commercial real estate properties, with terms similar to the properties’ useful lives or the operating cycle of the businesses. The main source of repayment of these real estate loans is derived from cash flows or conversion of productive assets and not from the income generated by the disposition of the property held as collateral. The main repayment source of loans granted to finance land acquisition, development and construction projects is generally derived from the disposition of the properties held as collateral, with the repayment capacity of the borrowers and any guarantors considered as alternative sources of repayment. Commercial loans secured by owner-occupied real estate properties are generally granted to finance the acquisition or operation of commercial real estate properties, with terms similar to the properties’ useful lives or the operating cycle of the businesses. The main source of repayment of these commercial real estate loans is derived from cash flows and not from the income generated by the disposition of the property held as collateral.

Commercial loans correspond to facilities established for specific business purposes such as financing working capital and capital improvements projects and asset-based lending, among others. These may be loan commitments, uncommitted lines of credit to qualifying customers, short term (one year or less) or longer term credit facilities, and may be secured, unsecured or partially secured. Terms on commercial loans generally do not exceed five years, and exceptions are documented. The Company provides equipment financing using a variety of loan and lease structures, as part of its commercial lending activities. These equipment loans and leases are originated under a white-label equipment financing solution launched in the second quarter of 2022.

Commercial loans to borrowers in similar businesses or products with similar characteristics or specific credit requirements are generally evaluated under a standardized commercial credit program. Commercial loans outside the scope of those programs are evaluated on a case by case basis, with consideration of any exposure under an existing commercial credit program.

Loans to financial institutions and acceptances are facilities granted to fund certain transactions classified according to their risk level, and primarily include trade financing facilities through letters of credits, bankers’ acceptances, pre- and post-export financing, and working capital loans, among others. Loans in this portfolio segment are generally granted for terms not exceeding three years and on an unsecured basis under the limits of an existing credit program, primarily to large financial institutions in Latin America which the Company believes are of high quality. Prior to approval, management also considers cross-border and portfolio limits set forth in its programs and credit policies.

Single-family residential and consumer and other loans are retail open-end and closed-end credits extended to individuals for household, family and other personal expenditures. Single-family and consumer loans include loans to individuals secured by their personal residence, including first mortgage, home equity and home improvement loans as well as revolving credit card agreements. In addition, consumer and other loans, include purchased indirect lending loans we purchase from time to time from third parties. Because these loans generally consist of a large number of relatively small-balance, homogeneous loans for each type, their risks are generally evaluated collectively. In the year ended December 31, 2022, the Company purchased $385.8 million in indirect consumer loans and $173.1 million in single-family residential loans.

At December 31, 2022 and 2021, loans with an outstanding principal balance of $1.2 billion and $1.1 billion, respectively, were pledged as collateral to secure advances from the FHLB.

The amounts in the table above include loans under syndication facilities for approximately $367.0 million and $373 million at December 31, 2022 and 2021, respectively, which include Shared National Credit facilities, or SNCs, and agreements to enter into credit agreements among other lenders (club deals), and other agreements. These loans are primarily designed for providing working capital to certain qualified domestic and international commercial entities meeting our credit quality criteria and concentration limits, and approved in accordance with credit policies. In addition, consumer loans and overdrafts in the table above include indirect consumer loans purchased totaling $433.3 million and $297.0 million at December 31, 2022 and 2021, respectively.

International loans included above were $99.2 million and $99.6 million at December 31, 2022 and 2021, respectively, mainly single-family residential loans. These loans are net of collateral of cash, cash equivalents or other financial instruments totaling $6.3 million and $21.1 million as of December 31, 2022 and December 31, 2021, respectively.

The age analysis of the loan portfolio by class as of December 31, 2022 is summarized in the following table:


	December 31, 2022
	Total Loans, Net of Unearned Income				Loans Past Due
(in thousands)			Current Loans		30-59 Days		60-89 Days		Greater than 90 Days		Total Past Due
Real estate loans
Commercial real estate
Nonowner occupied	$	1,615,716	$	1,615,716	$	—	$	—	$	—	$	—
Multi-family residential	820,023		818,394		1,387		242		—		1,629
Land development and construction loans	273,174		273,174		—		—		—		—
	2,708,913		2,707,284		1,387		242		—		1,629
Single-family residential	1,102,845		1,098,310		3,140		150		1,245		4,535
Owner occupied	1,046,450		1,039,928		172		6,014		336		6,522
	4,858,208		4,845,522		4,699		6,406		1,581		12,686
Commercial loans	1,381,234		1,373,042		1,523		475		6,194		$	8,192
Loans to financial institutions and acceptances	13,292		13,292		—		—		—		—
Consumer loans and overdrafts	604,460		601,921		2,439		62		38		2,539
	$	6,857,194	$	6,833,777	$	8,661	$	6,943	$	7,813	$	23,417

Nonaccrual status

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days and still accruing 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 (1)	$	26,475	$	10,653	$	37,128	$	471

_____________

(1)The Company did not recognize any interest income on nonaccrual loans during the year ended December 31, 2022.

The age analysis of the loan portfolio held for investment by class, including nonaccrual loans, as of December 31, 2021 is summarized in the following table:


	December 31, 2021
	Total Loans, Net of Unearned Income				Past Due								Total Loans in Nonaccrual Status		Total Loans 90 Days or More Past Due and Accruing
(in thousands)			Current		30-59 Days		60-89 Days		Greater than 90 Days		Total Past Due
Real estate loans
Commercial real estate
Nonowner occupied	$	1,540,590	$	1,540,590	$	—	$	—	$	—	$	—	$	7,285	$	—
Multi-family residential	514,679		514,679		—		—		—		—		—		—
Land development and construction loans	327,246		327,246		—		—		—		—		—		—
	2,382,515		2,382,515		—		—		—		—		7,285		—
Single-family residential	661,339		657,882		990		412		2,055		3,457		5,126		—
Owner occupied	962,538		961,132		—		—		1,406		1,406		8,665		—
	4,006,392		4,001,529		990		412		3,461		4,863		21,076		—
Commercial loans	965,673		939,685		277		1,042		24,669		25,988		28,440		—
Loans to financial institutions and acceptances	13,710		13,710		—		—		—		—		—		—
Consumer loans and overdrafts	423,665		423,624		22		7		12		41		257		8
	$	5,409,440	$	5,378,548	$	1,289	$	1,461	$	28,142	$	30,892	$	49,773	$	8

b) Loans held for sale

Loans held for sale consist of the following loan classes:


(in thousands)	December 31, 2022		December 31, 2021
Loans held for sale at the lower of cost or fair value
Real estate loans
Commercial real estate
Non-owner occupied	$	—	$	110,271
Multi-family residential	—		31,606

	—		141,877

Owner occupied	—		1,318
Total real estate loans	—		143,195

Total Loans held for sale at the lower of fair value or cost	—		143,195

Loans held for sale at fair value
Land development and construction loans	9,424		—
Single-family residential	53,014		14,905

Total loans held for sale at fair value (1)	62,438		14,905




Total loans held for sale (2)(3)	$	62,438	$	158,100

__________________

(1)Loans held for sale in connection with Amerant Mortgage’s ongoing business.

(2)Remained current and in accrual status at each of the periods shown.

(3)Excludes accrued interest receivable.

As of December 31, 2021, loans held for sale at the lower of fair value or cost consisted of New York commercial real estate (“CRE”) loans. In 2022, the Company transferred the New York CRE loans held for sale to the loans held for investment category. Also, in 2022, the Company completed the sale of approximately $57.3 million in loans held for sale carried at the lower of fair value or cost related to the New York portfolio, at their par value.

c) Concentration of risk

While seeking diversification of our loan portfolio held for investment and held for sale, the Company is dependent mostly on the economic conditions that affect South Florida and the greater Houston and New York City areas, especially the five New York City boroughs. Diversification is managed through policies with limitations for exposure to individual or related debtors and for country risk exposure.

d) Accrued interest receivable on loans

Accrued interest receivable on total loans, including loans held for investment and held for sale, was $27.7 million and $14.7 million as of December 31, 2022 and 2021, respectively. In the year ended December 31, 2022, the Company reversed accrued interest receivable on loans placed in non-accrual status during the year against interest income of approximately $0.9 million related to consumer loans and overdrafts and a total of $0.1 million related to real estate loans and commercial loans.