Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Investor Presentation (September 2020)
38 slides from Amerant Bancorp's investor presentation, Sep 8, 2020
Slide 1: Investor Presentation As of June 30, 2020
Investor Presentation As of June 30, 2020
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including, without limitation, future financial and operating results; costs and revenues; economic conditions generally and
Slide 3: Meant for You - Mission, vision and values
3 Meant for You - Our mission, vision and values define our culture and guide our future To be recognized as a trusted financial advisor dedicated to building stronger and deeper customer relationships in the markets we serve, leading to the company’s success To provide our customers with the financ
Slide 4: About Us
4 97.3% 2.7% 57.0% 43.0% Domestic • Largest community bank headquartered in Florida About Us • 27 branches throughout South Florida and Houston, with loan production offices in New York, NY and Dallas, TX (7) • $6.02 billion • $8.13 billion • Coral Gables, FL • 825 FTEs • $1.7 billion under manageme
Slide 5: Investment Opportunity Highlights
5 Established Franchise in Attractive Markets Pathway to Strong Profitability Significant Fee Income Platform Well-Positioned Loan Portfolio Strong and Diverse Deposit Base Investment Opportunity Highlights • Long history with strong reputation and deep client relationships • Presence in high- growt
Slide 6: Experienced Management Team
6 Frederick Copeland Chairman of the Board 78 years old Millar Wilson Vice-Chairman & CEO 67 years old Carlos Iafigliola Executive Vice President & Chief Financial Officer 43 years old Alfonso Figueredo President & Chief Operating Officer 59 years old Alberto Capriles Executive Vice President & Chie
Slide 7: Value Proposition and Brand Attributes
7Value Proposition and Brand Attributes By leveraging our experience and knowledge, we proactively anticipate your financial needs based on where you are and where you plan to go. We appreciate that everyone’s journey and goals are different, and our commitment is to inspire you and support you alon
Slide 8: Market Strategy
8Market Strategy Our strategy is to operate and expand in high-growth, diverse economies where we can build from our heritage serving the Hispanic community Target markets have: • Substantial domestic deposit growth potential • Diversified industries, requiring high-quality loans(1) • Population gro
Slide 9: Growing and Diverse Markets
9 Miami Houston U.S. 11.5% 2.8% 9.9% Miami Houston U.S. 6.3% 7.5% 3.3%Texa s(6 ) Miami Houston U.S. 13.7% 21.1% 7.0% June 30, 2019 Growing and Diverse Markets (1) During 4Q19, the Bank opened two new branches: Miami Lakes, Miami-Dade County, FL (10/07/19), and Boca Raton, Palm Beach County, Fl (12/0
Slide 10: Value proposition in development and transformation
10 Value proposition “in development” and strong reliance on “non-relationship” assets and liabilities Depositor base comprised substantially of individuals and corporations outside of the U.S. Wide range of lending products with diverse underwriting standards A number of non-core products and servi
Slide 11: Summary of Our Strategic Plan
11Summary of Our Strategic Plan Building on our strengths to shape our future Domestic focus with an International Heritage ▪ Grow U.S. presence and enhance market share in existing and adjacent markets ▪ Protect and serve valuable international customer base ▪ Enhance multi- channel client experien
Slide 12: Build on Improving Financial Performance
12 2015 2Q20 YTD (4) 84.7% 59.5% 2015 2Q20 2,030 3,433 2015 2Q20 1.36% 1.32% 2015 2Q20 YTD 2.26% 2.55% # of FTEs: 1,007 825 Yield on Loans: 3.06% 4.04% International Loans as % of Total Loans: 24.2% 2.7% Domestic Deposits as % of Total Deposits: 31.1% 57.0% Build on Improving Financial Performance D
Slide 13: Deep Culture of Enterprise Risk Management
13Deep Culture of Enterprise Risk Management • Own and manage their risks • Identify, measure, monitor, report, analyze, and mitigate risks • Internal controls • Strong culture of compliance with BSA/ AML and all regulatory standards • Comprehensive daily OFAC screening of all clients and counterpar
Slide 14: Investment Portfolio
14 U.S. Gov't sponsored enterprises 54.7% U.S. Gov't agency 15.3% Municipals 4.4% Corporate debt 25.4% US treasury 0.2% 1,750 1,500 1,250 2Q19 1Q20 2Q20 $1,477.4 $1,601.3 $1,519.8 $81.2 $70.3 $65.6$23.8 $24.2 $24.4 82.1% 17.9% Investment Portfolio Investment Securities Balances and Yields (1) Availa
Slide 15: Strategic Shift in Loan Mix Yielding Benefits
15 Domestic International Strategic Shift in Loan Mix Yielding Benefits Highlights • Continued focus on domestic lending activities. Domestic loan CAGR of 6.7% since 2015 • Average loan yields have increased from 3.06% in 2015 to 4.04% in the first half of 2020 • Diversified portfolio - highest sect
Slide 16: Balanced CRE Loan Portfolio
16 Balanced CRE Loan Portfolio CRE Portfolio CRE Loan Mix by Primary Market Area(1) Highlights (2) • Well diversified among geographies and property types, with construction representing less than 10% • Conservative weighted average LTV 61% and DSC 1.7x • Strong sponsorship profile • No significant
Slide 17: Disciplined Credit Culture
17 0.35% 0.15% -0.05% 2015 2016 2017 2018 2019 2Q20 YTD 0.05% 1.50% 1.00% 0.50% 0.00% 2015 2016 2017 2018 2019 2Q20 1.09% 1.50% 1.00% 0.50% 0.00% 2015 2016 2017 2018 2019 2Q20 US Peer Median(5)Amerant Disciplined Credit Culture Net Charge-Offs / Average Total Loans (2) Robust Underwriting Standards
Slide 18: Highly Attractive Deposit Franchise
18 2015 2016 2017 2018 2019 2Q20 $2,030 $2,484 $2,823 $3,001 $3,122 $3,433 2015 2016 2017 2018 2019 2Q20 $4,490 $4,093 $3,500 $3,031 $2,635 $2,592 Highly Attractive Deposit Franchise Highlights Deposit Mix (1) Domestic DepositsInternational Deposits • Focus on developing domestic relationships as op
Slide 19: Wholesale Funding
19Wholesale Funding • Completed $60.0 million offering of 5.75% Senior Notes as a new source of funding during COVID-19 pandemic • Modified maturities on $420.0 million fixed-rate FHLB advances resulting in 26 bps of annual savings for this portfolio and representing $2.4 million cost savings for th
Slide 20: Interest Income and Margin Trends
20 190 170 150 -50 bps -25 bps BASE +25 bps +50 bps $173 $175 $178 $182 $185 2015 2016 2017 2018 2019 2Q20 YTD 1.50% 0.97% 0.68% 0.54% 0.47% 0.50% Interest Income and Margin Trends Impact on NII from Interest Rate Change (2) ($ in Millions and percentages)• In 2Q20 proactive steps to protect NIM: –
Slide 21: Wealth Management Franchise Expansion
21 • Brokerage Services • Investment Advisory Services • Estate Planning • Asset Protection • Escrow Services escrow Wealth Management Franchise Expansion - Key Component of Noninterest Income Highlights • In 4Q19, acquired Grand Cayman-based trust company subsidiary, Elant Bank & Trust Ltd. $195 mi
Slide 22: Increasing Operating Efficiency
22 2015 2016 2017 2018 2019 2Q20 YTD 84.7% 78.0% 73.8% 78.8% 77.5% 59.5% 2015 2016 2017 2018 2019 2Q20 YTD 2.26% 2.48% 2.63% 2.78% 2.85% 2.55% Increasing Operating Efficiency Cost Initiatives (1) Balances annualized through June 30, 2020 (2) Includes loans, securities available for sale and held to
Slide 23: Drivers for Improvement
23Drivers for Improvement Multi-year shift towards increasing core domestic growth and profitability 1 Technology, Operating Model and Expense Saving Initiatives Continue to rationalize expenses and improve scalable platform, while investing in digital transformation to drive great customer experien
Slide 24: Investment Highlights
24 Investment Highlights Focus on driving profitable growth and shareholder value Top-shelf risk management culture stemming from having been part of large, multi-national organization Diversification of revenue from a greater share of wallet strategy and an attractive wealth management platform tha
Slide 25: Supplemental Information COVID-19 Update
Supplemental Information COVID-19 Update
Slide 26: Business Update Related to COVID-19
26 Business Update Related to COVID-19 • Amerant’s Business Continuity Plan (“BCP”), activated on March 16, 2020, successfully supports approximately 86% of employees with remote work capabilities • Phased opening approach started June 3rd to re-introduce employees back to the workplace on a volunta
Slide 27: Loan portfolio by industry
27 Loan portfolio by industry • Diversified portfolio - highest sector concentration, other than real estate, at 11% of total loans • 76% of total loans secured by real estate • Main concentrations: ◦ CRE or Commercial Real Estate ◦ Wholesale - Food ◦ Retail - Gas stations ◦ Services - Healthcare, R
Slide 28: Industries with escalated monitoring: CRE Hotels
28Industries with escalated monitoring CRE Hotels (As of 06/30/2020) • CRE Hotel portfolio is limited to 27 properties majority in popular travel destinations such as Miami Beach (#9 / $99 MM) and New York (#2 / $55 MM) • Three hotel construction loans to borrowers who are experienced hotel operator
Slide 29: Industries with escalated monitoring: CRE Retail
29 9% 21% 45% 22% 3% Industries with escalated monitoring CRE Retail (As of 06/30/2020) • Florida and Texas are focused on neighborhood shopping centers or service centers with basic needs related anchor stores, as well as the retail corridor in Miami Beach • New York is focused on high traffic reta
Slide 30: Appendices
Appendices
Slide 31: Appendix Summary Financial Statements
31 Appendix 1 Summary Financial Statements (1) As of June 30, 2020 and December 31, 2019, the balance of securities includes only held to maturity, available for sale and equity securities with readily determinable fair value not held for trading. For all other periods shown, the balance of securiti
Slide 32: Appendix Summary Financial Statements (cont'd)
32 Appendix 1 Summary Financial Statements (cont’d) Years ended December 31, Six monthsended (in thousands) 2015 2016 2017 2018 2019 June 30, 2020 Total Interest Income $208,199 $238,827 $273,320 $309,358 $312,974 $135,482 Total Interest Expense 35,914 46,894 63,610 90,319 99,886 39,930 Net Interest
Slide 33: Appendix Non-GAAP Financial Measures Reconciliations
33 Appendix 2 Non-GAAP Financial Measures Reconciliations Explanation of Certain Non-GAAP Financial Measures This Presentation contains certain adjusted financial information, and their effects on noninterest income, noninterest expense, income taxes, net income, operating income, efficiency ratios,
Slide 34: Non-GAAP Financial Measures Reconciliations (cont'd)
34Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d) (in thousands) 2Q20 YTD 2019 2018 2017 Total noninterest income $ 41,663 $ 57,110 $ 53,875 $ 71,485 Less: gain on sale of vacant Beacon land — (2,795) — — Less: gain on sale of New York building — — — (10,469) Adjusted noninterest inc
Slide 35: Non-GAAP Financial Measures Reconciliations (cont'd)
35 (in thousands) 2Q20 YTD 2019 2018 2017 Net (loss) income $ (11,897) $ 51,334 $ 45,833 $ 43,057 Plus after-tax restructuring costs: Restructuring costs before income tax effect 1,672 5,046 6,395 — Income tax effect (347) (1,001) (1,303) — Total after-tax restructuring costs 1,325 4,045 5,092 — Plu
Slide 36: Non-GAAP Financial Measures Reconciliations (cont'd)
36Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d) 2Q20 YTD 2019 2018 2017 Basic (loss) earnings per share $ (0.28) $ 1.21 $ 1.08 $ 1.01 Plus: after tax impact of restructuring costs 0.03 0.09 0.12 — Plus: after tax impact of total spin-off costs — — 0.16 0.07 Plus: effect of lower ra
Slide 37: Non-GAAP Financial Measures Reconciliations (cont'd)
37 Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d) (in thousands, except per share data and percentages) 2Q20 YTD 2019 2018 2017 Efficiency ratio 59.47 % 77.47 % 78.77 % 73.84 % Less: impact of restructuring costs (1.21)% (1.89)% (2.34)% — % Less: impact of total spin-off costs — % —
Slide 38: Amerant - Thank you
AMERANT Thank you
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