Amerant Bancorp (AMTB)

Risks

• Our concentration of CRE loans could result in increased loan losses, and adversely affect our business, earnings, and financial condition.
• Our valuation of securities and investments and the determination of the impairment amounts taken on our investments are subjective and, if changed, could materially adversely affect our results of operations or financial condition.
• Our strategic plan and growth strategy may not be achieved as quickly or as fully as we seek.
• Nonperforming and similar assets take significant time to resolve and may adversely affect our results of operations and financial condition.
• We may be contractually obligated to repurchase mortgage loans we sold to third-parties on terms unfavorable to us.
• Mortgage Servicing Rights, or MSRs, requirements may change and require us to incur additional costs and risks.
• Our success depends on our ability to compete effectively in highly competitive markets.
• Defaults by or deteriorating asset quality of other financial institutions could adversely affect us.
• The COVID-19 pandemic and actions taken by governmental authorities to mitigate its spread have significantly impacted economic conditions, and a future outbreak of COVID-19 or another highly contagious disease, could adversely affect our business activities, results of operations and financial condition.
• We may determine that our internal controls and disclosure controls could have deficiencies or weaknesses.
• Technological changes affect our business including potentially impacting the revenue stream of traditional products and services, and we may have fewer resources than many competitors to invest in technological improvements.
• Our information systems may experience interruptions and security breaches, and are exposed to cybersecurity threats.
• 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.
• Future acquisitions and expansion activities may disrupt our business, dilute shareholder value and adversely affect our operating results.
• We may not be able to generate sufficient cash to service all of our debt, including the Senior Notes.
• We and Amerant Florida, 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.
• 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.
• 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 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 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.
• 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.
• 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.