Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Investor Presentation (February 2021)
39 slides from Amerant Bancorp's investor presentation, Feb 26, 2021
Slide 1: Investor Presentation As of December 31, 2020
Investor Presentation As of December 31, 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 statements with respect to our objectives, expectations and intentions and other statements that are not historical
Slide 3: Meant for You - Our 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% 56% 44% Domestic • Second largest community bank headquartered in Florida About Us • 25 branches throughout South Florida and Houston, with loan production offices in New York, NY and Dallas, TX (7) • $5.73 billion • $7.77 billion • Coral Gables, FL • 713 FTEs • $1.97 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 • Physical presence in hi
Slide 6: Experienced Management Team
6 Jerry Plush Executive Vice-Chairman (1) 62 years old Millar Wilson Chief Executive Officer 68 years old Carlos Iafigliola Executive Vice President & Chief Financial Officer 44 years old Alfonso Figueredo President & Chief Operating Officer 59 years old Alberto Capriles Executive Vice President & C
Slide 7: Market Strategy
7 Market 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 g
Slide 8: Growing and Diverse Markets
8 11.4% 3.8% 9.0% Miami Houston U.S. 5.4% 7.6% 2.9% Miami Houston U.S. T e x a s (6 ) 12.9% 22.2% 7.2% Miami Houston U.S. June 30, 2020 Growing and Diverse Markets (1) The Company closed one banking center in Florida, and another in Texas, on October 30, 2020 (2) Deposit Market Share data and number
Slide 9: Value Proposition and Brand Attributes
9 Value 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 alo
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
11 Summary 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 client experience across all
Slide 12: Build on Improving Financial Performance
12 84.7% 68.0% 2015 2020 2,030 3,203 2015 2020 1.36% 1.50% 2015 2020 2.26% 2.52% 2015 2020 # of FTEs: 1,007 713 Yield on Loans: 3.06% 3.86% International Loans as % of Total Loans: 24.2% 3.0% Domestic Deposits as % of Total Deposits: 31.1% 55.9% Build on Improving Financial Performance Domestic Depo
Slide 13: Deep Culture of Enterprise Risk Management
13 Deep 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 counterpa
Slide 14: Investment Portfolio
14 $1,568.8 $1,317.7 $1,225.1 $73.9 $61.7 $58.1 $23.8 $24.4 $24.3 4Q19 3Q20 4Q20 $0 $500 $1,000 $1,500 Available for Sale (AFS) Held to Maturity (HTM) U.S. Gov't sponsored enterprises 54.0% U.S. Gov't agency 16.7% Municipals 4.5% Corporate debt 24.6% US treasury 0.2% 86.4% 13.6% 87.3% 12.7% Balances
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 5.9% since 2015 • Average loan yields have increased from 3.06% in 2015 to 3.86% in 2020 • Diversified portfolio - highest sector concentration,
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 12.3% • Conservative weighted average LTV 60% and DSC 1.7x • Strong sponsorship profile • No significant tenant c
Slide 17: Disciplined Credit Culture
17 0.06% 2015 2016 2017 2018 2019 2020 0.00% 0.15% 0.30% 0.45% 0.60% 1.20% 2015 2016 2017 2018 2019 2020 0.00% 0.50% 1.00% 1.50% 2.00% 0.63% 2015 2016 2017 2018 2019 2020 0.00% 0.50% 1.00% 1.50% US Peer Median(4)Amerant Disciplined Credit Culture Net Charge-Offs / Average Total Loans (1) Robust Unde
Slide 18: Highly Attractive Deposit Franchise
18 Jumbo Time 11.5% NIB Demand 15.2% IB Demand 21.5% MMDA & Savings,27.7% Retail Time 24.1% $2,030 $2,484 $2,823 $3,001 $3,122 $3,203 2015 2016 2017 2018 2019 2020 $4,490 $4,093 $3,500 $3,031 $2,635 $2,529 2015 2016 2017 2018 2019 2020 Highly Attractive Deposit Franchise Highlights Deposit Mix (1) D
Slide 19: Wholesale Funding & Debt by Maturity
19 2021 11.3% 2022 12.3% 2023 8.9% 2024 and after 59.7% No contractual maturity 7.8% Wholesale Funding (1) & Debt (2) by Maturity ($ in millions) Year of Maturity Interest Rate 4Q19 3Q20 4Q20 No contractual maturity 0.33% — 22 140 2020 1.50% to 2.35% 591 38 — 2021 1.70% to 3.08% 355 175 205 2022 0.6
Slide 20: Interest Income and Margin Trends
20 $196 $198 $201 $205 $208 -50 bps -25 bps BASE +25 bps +50 bps $190 $200 $210 $220 $230 2.26% 2.48% 2.63% 2.78% 2.85% 2.52% 3.50% 3.69% 3.65% 3.95% 3.77% 3.24% 2015 2016 2017 2018 2019 2020 Interest Income and Margin Trends Impact on NII from Interest Rate Change (2) • Proactive steps in 4Q20 to p
Slide 21: Wealth Management Franchise Expansion
21 Deposits and service fees 21.6% Brokerage,advisory, and fiduciary activities 23.1% Other non- interest income 55.3% 23.8% 24.2% 23.0% 20.0% 19.5% 20.3% 17.4% 26.6% 23.8% 21.2% 15.8% 16.2 2015 2016 2017 2018 2019 2020 • Brokerage Services • Investment Advisory Services • Estate Planning • Asset Pr
Slide 22: Increasing Operating Efficiency
22 84.7% 78.0% 73.8% 78.8% 77.5% 68.0% 2015 2016 2017 2018 2019 2020 2.26% 2.48% 2.63% 2.78% 2.85% 2.52% 2015 2016 2017 2018 2019 2020 Increasing Operating Efficiency Cost Initiatives (2) Includes loans, securities available for sale and held to maturity, deposits with banks and other financial asse
Slide 23: Drivers for Improvement
23 Drivers 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 experie
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 Loan Portfolio Information
Supplemental Loan Portfolio Information As of December 31, 2020
Slide 26: Deferrals & Forbearance
26Deferrals & Forbearance • Proactive and careful monitoring of credit quality, industry and regional trends • Tightening of underwriting standards while continuing to do business, enhancing the monitoring of the entire loan portfolio As of December 31, 2020: • $43.4 million, or 0.7% of total loans,
Slide 27: Loan Portfolio by Industry
27 ($ in millions) Real Estate Non-Real Estate Total % Total Loans Unfunded Commitments(8) Financial Sector (1) $ 5 $ 66 $ 71 1.2 % $ 20 Construction and Real Estate & Leasing: Commercial real estate loans 2,837 — 2,837 48.6 % 184 Other real estate related services and equipment leasing (2) 53 61 13
Slide 28: CRE Hotels
28 Full Service 36% Limited Service 36% Boutique 28% Industries with escalated monitoring CRE Hotels (As of 12/31/2020) Highlights Hotels Hotels - LTV Total: $280 million Loan Portfolio Percentage: 4.8% • CRE Hotel portfolio is limited to 27 properties, majority of which are in popular travel destin
Slide 29: CRE Retail
29 Neighborhood Center 20% Single Tenant 24% Strip/Convenience 30% Community Center14% Theme/Festival Center 12% 11% 24% 42% 20% 3% 50% or less 50- 60% 60- 70% 70- 80% 80% or more 0% 10% 20% 30% 40% 50% 60% Industries with escalated monitoring CRE Retail (As of 12/31/2020) Highlights CRE Retail(1) R
Slide 30: Appendices
Appendices
Slide 31: Summary Financial Statements
31 December 31, (in millions) 2015 2016 2017 2018 2019 2020 Assets Cash and cash equivalents $138.3 $135.0 $153.4 $85.7 $121.3 $214.4 Total securities (1) 2,055.6 2,123.2 1,777.0 1,671.2 1,666.5 1,307.6 Loans held for sale (HFS) 9.7 — 5.6 — — — Loans, gross (excl HFS) 5,623.2 5,764.8 6,066.2 5,920.2
Slide 32: Summary Financial Statements (cont'd)
32 Appendix 1 Summary Financial Statements (cont’d) Years ended December 31, (in thousands) 2015 2016 2017 2018 2019 2020 Total interest income $208,199 $238,827 $273,320 $309,358 $312,974 $260,554 Total interest expense 35,914 46,894 63,610 90,319 99,886 71,002 Net interest income $172,285 $191,933
Slide 33: 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) 2020 2019 2018 2017 Total noninterest income $ 73,470 $ 57,110 $ 53,875 $ 71,485 Plus: loss on sale of the Beacon operations center (1) 1,729 — — — Less: gain on sale of vacant Beacon land — (2,795) — — Less: net gain o
Slide 35: Non-GAAP Financial Measures Reconciliations (cont'd)
35 Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d) (in thousands) 2020 2019 2018 2017 Net (loss) income $ (1,722) $ 51,334 $ 45,833 $ 43,057 Plus after-tax restructuring costs: Restructuring costs before income tax effect 11,925 5,046 6,395 — Income tax effect (7,187) (1,001) (1,303)
Slide 36: Non-GAAP Financial Measures Reconciliations (cont'd)
36Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d) 2020 2019 2018 2017 Net (loss) Income $ (1,722) $ 51,334 $ 45,833 $ 43,057 Plus: provision for income tax (benefit) expense (2,612) 12,697 11,733 33,992 Plus: provision for (reversal of) loan losses 88,620 (3,150) 375 (3,490) Less: se
Slide 37: Non-GAAP Financial Measures Reconciliations (cont'd)
37Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d) (in thousands, except per share data and percentages) 2020 2019 2018 2017 Net income (loss) / Average stockholders' equity (ROE) -0.21 % 6.43 % 6.29 % 5.62 % Plus: after tax impact of restructuring costs 0.57 % 0.51 % 0.70 % — % Plus:
Slide 38: Reconciliation footnotes
38 (1) The Company leased-back the property for a 2-year term. (2) Expenses incurred for actions designed to implement the Company’s strategy as a new independent company. These actions include, but are not limited to, reductions in workforce, streamlining operational processes, rolling out the Amer
Slide 39: Amerant - Thank you
AMERANT Thank you
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