Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q2 2024 Earnings Presentation
34 slides from Amerant Bancorp's earnings presentation, Jul 25, 2024
Slide 1: Second Quarter Earnings
Second Quarter Earnings July 25, 2024
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers 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. Examples of forward- looking statements
Slide 3: 2Q24 In Review
2Q24 In Review • Total loans increased by $316.5 million, driven by organic loan growth • Total deposits decreased by $62.2 million as organic deposit growth was offset by a reduction of higher-cost municipal and commercial deposits • FHLB advances increased by $50.0 million, as we added 3-year fixe
Slide 4: 2Q24 Highlights
2Q24 Highlights Income Statement Balance Sheet Capital • Diluted earnings per share (1) - $0.15 • Total Assets - $9.7B • Total Capital Ratio - 12.00% • NIM - 3.56% • Total Deposits - $7.8B • CET 1 - 9.70% • Provision for credit losses - $19.2M • Loans Held for Investment , gross - $7.3B • Tier 1 Cap
Slide 5: Key Performance Metrics
Key Performance Metrics NIB Deposits/Total Net Interest Efficiency ACL / Total Loans held ROA ROE Tier 1 Capital Ratio Deposits Margin Ratio for investment 0.44% 1.38% 1.41% 10.87% 10.44% 17.7% 18.7% 3.51% 3.56% 5.69% 0.21% 72.03% 74.21% 2.68% 1Q24 2Q24 1Q24 2Q24 1Q24 2Q24 1Q24 2Q24 1Q24 2Q24 1Q24 2
Slide 6: Well Diversified and Stable Deposit Mix
Well Diversified and Stable Deposit Mix Deposit Composition Mix by Country of Domicile ($ in millions) $7,895 $7,878 $7,816 Domestic Deposits 68% of Total Deposits 8,000 $7,580 $7,547 ($ in millions) Approx. avg. acct balance: $110,000 $1,427 $1,397 $1,465 $1,294 $1,370 7,000 5,000 6,000 $737 $650 $
Slide 7: Investment Portfolio
Investment Portfolio Expected Prepayments & Maturities Balances and Yields (1) ($ in millions) ($ in millions) 40.0 33.3 32.9 33.4 33.2 2,000 $2.5 $2.5 1,500 $2.5 $224.0 $219.6 $234.4 20.0 1,000 4.31% 4.40% 4.64% 4.78% 4.83% 4.17% 500 3.89% $1,027.7 $1,298.1 $1,269.4 0 0.0 2Q23 1Q24 2Q24 3Q24 4Q24 1
Slide 8: Loan Portfolio Highlights
Loan Portfolio Highlights Loan Composition (1) Geographic GeographicMix (1) Mix(Domestic) 7.0% 6.1% 5.4% 4.8% 4.2% 2.1% 2.0% 1.8% 1.7% 1.6% 3.9% 4.0% 4.5% 3.9% 4.2% 4.1% 3.4% 3.0% 3.3% 3.0% 18.5% 19.5% 20.4% 21.6% 21.7% 12.9% 11.6% 18.5% 17.3% 19.6% 14.7% 15.8% 16.2% 17.0% 16.4% 22.0% 20.5% 20.9% 22
Slide 9: CRE Loans Held For Investment - Detail
CRE Loans Held For Investment - Detail Outstanding as of June 30, 2024 ($ in millions) Land and CRE Type FL TX NY Other Total % Total CRE % Total Loans (1) Income Producing (2) Construction Retail $ 610 $ 36 $ 78 $ 2 $ 726 30.1 % 10.7 % $ 721 $ 5 Multifamily $ 351 $ 61 $ 88 $ — $ 500 20.7 % 7.5 % $
Slide 10: Credit Quality
Credit Quality Allowance for Credit Losses NPLs/ Total Loans and NPAs / Total Assets ($ in millions) 1.38% $106.0 $98.8 $95.5 $96.1 $94.4 1.48% 0.65% 0.46% 0.47% 0.43% 1.24% 1.40% 1.41% 0.71% 1.39% 1.38% 0.57% 0.56% 0.51% 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 Allowance for Credit Losses
Slide 11: Special Mention & Non-Performing Loans
Special Mention & Non-Performing Loans Special Mention Loans ($ in millions) $103.8 $95.3 $49.7 $1.2 $(5.0) $(7.8) $(0.6) $(46.0) 1Q24 Downgrades to Upgrades to Downgrades to Payoffs Paydowns Additional 2Q24 Special Mention Pass Substandard Disbursements Non-Performing Loans ($ in millions) $93.3 $1
Slide 12: Allowance for Credit Losses
Allowance for Credit Losses ($ in millions) $96.1 $94.4 $12.8 $12.7 $0.9 $1.8 $(5.3) $(4.4) $(20.2) 1Q24 Gross Charge- Recoveries Requirement for Specific Reserves Credit Quality Loan Growth Release from TX 2Q24 offs Charge-offs Change and Portfolio HFS Macroeconomic Changes 12
Slide 13: Net Interest Income and NIM
Net Interest Income and NIM 13 NII and NIM (%) ($ in millions) $83.9 $81.7 $78.6 $78.0 $79.4 80 70 60 50 3.83% 40 3.72% 3.57% 3.51% 3.56% 30 20 10 0 2Q23 3Q23 4Q23 1Q24 2Q24 Net Interest Income NIM Total Deposits Beta Evolution Cost of Funds 1.96 2.00 1.00 2Q23 3Q23 4Q23 1Q24 2Q24 Cost of Deposits (
Slide 14: Net Interest Margin
Net Interest Margin Margin Bridge 3.51% 3.56% 0.06% 0.04% (0.03)% (0.02)% 1Q24 Loans Securities Other Earning Asset Cost of Funds 2Q24 Mix 14
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity 15 Impact on NII from Interest Rate Change (1)(2) Impact on AFS from Interest Rate Change (1) As of June 30, 2024 Expected AOCL Improvement 3.4% 3.6% 2.9% 8.8% 400 0% (6.8)% (2.5)% (1.2)% 4.6% 2.3% 0% ($ in Millions) ($ in Millions) (2.3)% (4.7)% (50) (9.3)% 200 1,379 1,326
Slide 16: Non-Interest Income Mix
Non-Interest Income Mix Non-Interest Income Mix Assets Under Management and Custody ($ in millions) 30 $26.6 $21.9 2Q23 2Q24 $13.4 $19.5 $19.4 20 $0.2 $7.0 $2.4 $14.5 17% $6.5 $0.2 $0.5 $1.2 $0.5 20% $0.2 $0.8 $7.2 $4.5 $4.4 $5.6 10 $3.8 $4.3 $4.4 $4.2 $4.3 $4.5 $2.1B $2.5B $5.3 $4.9 $5.1 $4.4 $4.3
Slide 17: Non-Interest Expense
Non-Interest Expense Non-Interest Expense Mix Non-routine Noninterest Expenses ($ in millions, except for FTEs) ($ in millions) 50 120 $109.7 $43.1 40 90 $72.5 $73.3 30 $64.4 $76.7 $66.6 60 $37.5 $38.3 $39.4 20 $33.1 $33.6 $13.4 30 $34.2 $31.3 $33.0 $33.0 $33.9 10 $6.3 $5.6 710 720 $3.4 700 696 $5.6
Slide 18: EPS Trend
EPS Trend Change in Diluted Earnings Per Common Share $0.40 $0.31 $0.30 $0.20 $0.15 $0.15 $0.10 $0.05 $— $(0.10) $(0.20) $(0.16) $(0.20) $(0.30) (*) 1Q24 PPNR Net Non-routine Provision for Credit Income Tax Expense 2Q24 Items Losses (*) Refers to core PPNR which is a non-GAAP Financial Measure. See
Slide 19: Closing Remarks
Closing Remarks • Loan production was strong in 2Q24 and the pipeline for 3Q24 is aligned with previous guidance of 10% annualized growth • Deposit growth to fund projected loan growth continues to be our top priority • We continue to actively recruit for additional commercial relationship bankers a
Slide 20: Supplemental Loan Portfolio Information
Supplemental Loan Portfolio Information
Slide 21: Loans Held for Investment Portfolio by Industry
Loans Held for Investment Portfolio by Industry June 30, 2024 Non-Real Highlights ($ in millions) Real Estate Estate Total % Total Loans Financial Sector (1) $ 21 $ 328 $ 349 5.2 % • Diversified portfolio - highest Construction and Real Estate & Leasing: sector concentration, other than Commercial r
Slide 22: CRE Retail - Detail
CRE Retail - Detail As of 06/30/2024 Retail - LTV CRE Retail (1) CRE Retail - Single Tenant (1) 60% Food and Health Retail; 24% Theme/Festival Banking; 7% Center; 10% Neighborhood Center; 35% 50% 38% 40% 33% Community Center; 12% 30% Car Wash; 32% 20% 16% Single Tenant; 10% 13% 10% —% Clothing; 37%
Slide 23: CRE Office - Detail
CRE Office - Detail As of 06/30/2024 CRE Office (1) Office - LTV 60% New York; 10% Texas; 10% 50% 42% 40% 36% 30% 20% 13% South Florida; 80% 9% 10% —% 0% 50% or 51-60% 61-70% 71-80% 81% or Total: $420 million less more Loan Portfolio Percentage: 6.4% (1) CRE office loans held for investment above $5
Slide 24: Appendices
Appendices
Slide 25: Non-GAAP Financial Measures Reconciliations
Appendix 1 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related
Slide 26: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended ($ in thousands) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Total noninterest expense $ 73,302 $ 66,594 $ 109,702 $ 64,420 $ 72,500 Less: non-routine noninterest expense items Rest
Slide 27: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended, September ($ in thousands, except percentages and per share data) June 30, 2024 March 31, 2024 December 31, 2023 30, 2023 June 30, 2023 Net income (loss) attributable to Amerant Bancorp Inc. $ 4,963 $ 10,568 $ (17,12
Slide 28: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended, ($ in thousands, except percentages and per share data) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Net income (loss) / Average stockholders' equity (ROE) 2.68 % 5.69 % (9.22)% 11.
Slide 29: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended, ($ in thousands, except percentages and per share data) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Tangible common stockholders' equity $ 709,761 $ 713,150 $ 711,039 $ 692,969 $ 6
Slide 30: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) (1) In the second and first quarter of 2024 and in the fourth and third quarter of 2023, includes $17.7 million, $12.4 million, $12.0 million and $7.4 million of provision for credit losses on loans, respectively. Provision for unfunded
Slide 31: Income Statement Highlights - 2Q24 vs 1Q24
Income Statement Highlights - 2Q24 vs 1Q24 ($ in thousands) 2Q24 1Q24 Change Total Interest Income Loans $ 124,117 $ 122,705 $ 1,412 Investment securities 16,950 16,091 859 Interest earning deposits with banks and other interest income 5,342 5,829 (487) Total Interest Expense — Interest bearing dema
Slide 32: Glossary
Glossary 32 • ACL - Allowance for Credit Losses • MV - Market Value • AFS - Available for Sale • NPL - Non-Performing Loans • AOCI - Accumulated Other Comprehensive Income • NPA - Non-Performing Assets • CET 1 - Common Equity Tier 1 capital ratio • NIB - Noninterest Bearing • CRE - Commercial Real E
Slide 33: Glossary (cont'd)
Glossary (cont'd) 33 • TCE Ratio: 2Q24 includes $78.9 million accumulated unrealized losses net of taxes primarily related to the decline in the fair value of debt securities available for sale, which are carried at fair value, as a result of increases in market rates. • Total gross loans: includes
Slide 34: AMERANT BANK Imagine tomorrow.
AMERANT BANK Imagine tomorrow.