Slide 1: Earnings Call First Quarter 2022
Earnings Call April 21, 2022 First Quarter 2022
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation contains “forward-looking statements” including statements with respect to the Company’s objectives, expectations and intentions and other statements that are not historical facts. All statements other than statements of historical fact are statements t
Slide 3: Performance Highlights 1Q22
3Performance Highlights 1Q22 Business • Net income attributable to the Company of $16.0 million in 1Q22 compared to $65.5 million in 4Q21 (4Q21 included a $62.4 million gain on the sale of the Company's headquarters building) • Core pre-provision net revenue (Core PPNR)(1) was $17.9 million compared
Slide 4: Performance Highlights 1Q22 (Cont'd) - Capital
4 • All capital ratios continue to be substantially above "well capitalized" levels • Cash dividend of $0.09 per share of Amerant common stock paid out on February 28, 2022 • Based on 1Q22 results, Board of Directors declared a dividend of $0.09 per share on April 13, 2022 payable on May 31, 2022 •
Slide 5: Core PPNR - 1Q22
5Core PPNR(1) - 1Q22 (1) Non-GAAP Financial Measure (2) The Company sold its Coral Gables headquarters for $135 million, with an approximate carrying value of $69.9 million at the time of sale and transaction costs of $2.6 million. The Company leased-back the property for an 18-year term. The provis
Slide 6: Key Actions Update
6Key Actions Update • Announced the retirement of two long-time board directors and appointment of four new ones, all of whom are in footprint (3 south FL, 1 Houston) • Completed private placement of $30 million of 4.25% fixed-to-floating rate subordinated notes due 2032, considered tier 2 capital •
Slide 7: Focused on Key Performance Metrics
7 41.40% 87.29% 4Q21 1Q22 21.0% 23.2% 4Q21 1Q22 13.45% 12.48% 4Q21 1Q22 3.17% 3.18% 4Q21 1Q22 Focused on Key Performance Metrics Robust Deposit Base Robust Capital Position Higher Operating Profitability Rationalizing Cost Structure (1) Calculated based upon the average daily balance of total assets
Slide 8: Amerant Mortgage ("AMTM")
8Amerant Mortgage ("AMTM") • In the first quarter of 2022, AMTM received 292 applications, funded 156 loans totaling $91.1 million • Launched construction loan program • On March 31, 2022, Amerant's ownership interest increased from 51% to 57.4% as a $1.5 million injection was needed to meet FNMA re
Slide 9: Investment Portfolio Balances and Yields
9 82.5% 17.5% U.S. Gov't sponsored enterprises 34.4% U.S. Gov't agency 33.5% Collateralized Debt Obligations 0.4% Corporate debt 31.4% Other 0.3% $1,190.2 $1,175.3 $1,145.8 $104.7 $118.2 $112.0 $24.0 $0.3 $13.4 2.15% 2.37% 2.55% 1Q21 4Q21 1Q22 0 500 1,000 1,500 86.1% 13.9% • Effective duration incre
Slide 10: Loan Portfolio Highlights
10 48.5% 48.6% 48.1% 45.3% 43.3% 19.5% 18.1% 16.9% 17.6% 19.3% 16.3% 16.8% 17.1% 17.3% 16.2% 10.9% 11.0% 11.4% 12.2% 12.7% 4.8% 5.5% 6.5% 7.6% 8.5% 3.77% 3.89% 3.92% 4.10% 4.16% 1Q21 2Q21 3Q21 4Q21 1Q22 66.1% 65.5% 68.3% 69.8% 71.3% 18.0% 18.4% 17.2% 18.4% 19.4% 12.9% 13.1% 11.4% 8.8% 6.5% 3.0% 3.0%
Slide 11: New York Closed LPO - Update
11New York Closed LPO -Update • Decreased by $118 million in 1Q22 to $373 million from $491 million in 4Q21 • $57.3 million loans sold at par in 1Q22 Contractual Maturity Schedule: As of March 31, 2022
Slide 12: Credit Quality
12 $110.9 $104.2 $83.4 $69.9 $56.1 1.93% 1.86% 1.59% 1.29% 1% 1Q21 2Q21 3Q21 4Q21 1Q22 —% 0.12% 1.16% 0.52% 0.29% 1Q21 2Q21 3Q21 4Q21 1Q22 • Credit quality remains sound and reserve coverage is strong; released $10.0 million from the ALL in 1Q22 compared to $6.5 million in 4Q21 • 100% of non-perform
Slide 13: Deposit Highlights
13 $5,678 $5,675 $5,626 $5,631 $5,692 $2,759 $2,835 $2,875 $3,013 $3,076 $1,388 $1,243 $1,107 $1,048 $951 $553 $531 $433 $387 $347 $978 $1,066 $1,211 $1,183 $1,318 0.60% 0.52% 0.44% 0.41% 0.38% 1Q21 2Q21 3Q21 4Q21 1Q22 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 $2,635 $2,529 $2,494 $2,512 2019 2020
Slide 14: Net Interest Income and NIM
14 $47.6 $50.0 $51.8 $55.8 $55.6 2.66% 2.81% 2.94% 3.17% 3.18% Net Interest Income NIM 1Q21 2Q21 3Q21 4Q21 1Q22 0 10 20 30 40 50 60 NII slight decrease in 1Q22 was driven by: • Higher average balances and yields on FHLB advances and transactional accounts, as a result of hedging strategy against int
Slide 15: Interest Rate Sensitivity
15 210 216 224 233 241 -100 bps -50 bps BASE +50 bps +100 bps 150 200 250 (March 31, 2022) Fixed 51% Adjustable 49% Interest Rate Sensitivity By Interest TypeBy Rate Type By Repricing Term (1) NII and percentage change represents the base scenario of net interest income. The base scenario assumes (i
Slide 16: Noninterest Income
16 $14.2 $15.7 $13.4 $14.0 $4.1 $4.3 $4.3 $4.5 $4.6 $4.6 $4.4 $4.6 $5.0 $4.6 $2.6 $1.3 $0.8 $2.7 $4.4 $4.0 $3.4 $2.1 $62.4 $0.2 $1.3 $0.5 $3.2 1Q21 2Q21 3Q21 4Q21 1Q22 0 10 20 30 10% 90% 12% 88% Noninterest Income Mix Noninterest Income Mix Commentary Noninterest income decrease in 1Q22 was driven b
Slide 17: Noninterest Expense
17 • Noninterest expense increased in 1Q22 (includes $6.6 million in non recurring expenses) primarily due to higher : – Estimated contract termination costs resulting from the Company’s engagement of FIS, as well as a valuation expense recorded on the change in fair value of NY loans held for sale
Slide 18: Strategic Initiatives Update
18Strategic Initiatives Update Deposits First – Additions to Treasury Management and Private Banking teams efforts contributed to increasing deposit levels A Superior Customer Experience – FIS, Numerated, Marstone, Alloy and Clickswitch implementations all in progress Rationalize Existing and Evalua
Slide 19: Appendices
Appendices
Slide 20: Non-GAAP Financial Measures Reconciliations
20Appendix 1 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented relate
Slide 21: Non-GAAP Financial Measures Reconciliations (cont'd)
21 Three Months Ended, ($ in thousands) March 31, 2022 December 31, 2021 March 31, 2021 Total noninterest expenses $ 60,818 $ 55,088 $ 43,625 Less: non-routine noninterest expense items Restructuring costs (2): Staff reduction costs (3) 765 26 6 Contract termination costs (4) 4,012 — — Legal and Con
Slide 22: Non-GAAP Financial Measures Reconciliations (cont'd)
22Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, (in thousands, except percentages and per share amounts) March 31, 2022 December 31, 2021 March 31, 2021 Net income attributable to Amerant Bancorp Inc. $ 15,950 $ 65,469 $ 14,459 Plus after-tax non-routine items i
Slide 23: Non-GAAP Financial Measures Reconciliations (cont'd)
23Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, (in thousands, except percentages, share data and per share amounts) March 31, 2022 December 31, 2021 March 31, 2021 Net income / Average stockholders' equity (ROE) 8.10 % 32.04 % 7.47 % Plus: after tax impact of n
Slide 24: Non-GAAP Financial Measures Reconciliations (cont'd)
24Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) (1) The Company sold its Coral Gables headquarters for $135 million, with an approximate carrying value of $69.9 million at the time of sale and transaction costs of $2.6 million. The Company leased-back the property for an 18-year te
Slide 25: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com