Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q4 2023 Earnings Presentation
34 slides from Amerant Bancorp's earnings presentation, Feb 13, 2024
Slide 1: Investor Update
Investor Update February 13, 2024 NYSE: AMTB amerantbank.com
Slide 2: Table of Contents
Being the bank of choice in the markets we serve. Table of Contents 1 About Us 2 Company Updates 3 Performance Updates 4 Community Updates Investor Update | 2
Slide 3: Important Notices and Disclosures
Important Notices and Disclosures 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
Slide 4: About Us
About Us
Slide 5: About Us
About Us Financial and non-financial information provided here is as of December 31, 2023 Founded in 1979 History Completed IPO in December 2018 Rebranded as Amerant in June 2019 Team Members 682 FTEs (67 FTEs - Amerant Mortgage) $9.7 billion Assets 1 Largest community bank headquartered in Florida
Slide 6: Our Investment Proposition
Our Investment Proposition Established franchise with high scarcity value; presence in attractive, high-growth markets of Miami/South Florida, Tampa and Houston. Strong and diverse deposit base; organic, deposits-first focus. Strong reserve coverage and disciplined credit culture. Well capitalized;
Slide 7: Our Mission, Vision, and Precepts
Our Mission, Vision, and Precepts Mission To provide our customers with the products, services and advice they need to achieve financial success, through our diverse, inclusive and motivated team that is personally involved with the communities we serve, all of which result in increased shareholder
Slide 8: Experienced Leadership Team
Experienced Leadership Team Jerry Plush | Chairman and CEO Mr. Plush serves as the Company’s Chairman, President, and CEO since June 8, 2022, having served previously as Vice-Chairman & CEO since March 20, 2021, and as Vice Chairman since February 15, 2021. Mr. Plush is a highly respected financial
Slide 9: Our Team
Our Team Workforce Demographics as of 12/31/23 2% 4% 3% 10% 11% 31% Race/ Age 49% Gender 51% Ethnicity* 58% 81% <31 31-50 51+ Women Men White, Non Hispanic Hispanic Black Asian Other *Numbers do not include team members from Amerant Mortgage. For the second consecutive year, Amerant Bank was certifi
Slide 10: Company Updates
Company Updates
Slide 11: 4Q 2023 in Review, Mid-1Q 2024 Update, 2024 Outlook
4Q 2023 in Review Total deposits increased $326 million, while total loans grew by $132 million Reclassified $401 million of our Houston-based multifamily loans as held-for-sale; recorded non- cash charge of $30.0 million before taxes in 4Q23; sale completed on January 25, 2024 Completed previously-
Slide 12: Digital Transformation
Digital Transformation Groundwork is set post FIS conversion for Amerant to continue enhancing digital capabilities and achieve core results. Completed successful technology reorganization. Enhanced payment capabilities for commercial and consumer clients. New FIS technology framework gives us the a
Slide 13: The Amerant Brand Evolution
The Amerant Brand Evolution 2024 Imagine Tomorrow Campaign We have identified an opportunity to enhance our 2021 Imagine Campaign by aligning it with the underlying reasons our customers should choose Amerant for their banking needs. Shifting from a functional to an emotive approach. Obtaining a bus
Slide 14: Banking Center & Regional Office Updates
Banking Center & Regional Office Updates Tampa Banking Center I Opened January 2024 “We are delighted to announce the expansion of our footprint with our first new banking center in the greater Tampa market. This expansion not only demonstrates our continued growth, but also solidifies our presence
Slide 15: Banking Center & Regional Office Updates
Banking Center & Regional Office Updates Broward County Regional Corporate Office Our vision is to be the bank of choice in the markets we serve, and the establishment of a formal regional corporate office in Broward County is essential toward achieving that vision. Located within the Cornerstone On
Slide 16: Performance Updates
Performance Updates
Slide 17: Key Performance Metrics
Key Performance Metrics NIB Deposits / 3Q23 18.2% Total Deposits 4Q23 17.8% Net Interest 3Q23 3.57% Other Highlights 4Q23 Margin 4Q23 3.72% Loan to deposit ratio was 92.41% compared to 3Q23 64.10% 94.64% in 3Q23 Efficiency Ratio 4Q23 108.30% 3Q23 0.92% Strong organic deposit ROA (1) inflows with red
Slide 18: Deposit Composition
Deposit Composition Deposit Composition ($ in millions, except for percentages) 8,000 $7,580 $7,873 $7,287 $7,547 $7,044 7,000 $1,294 $1,405 $1,361 $1,370 $1,368 6,000 $686 $737 $738 $629 $736 5,000 4,000 $1,204 $1,451 $1,578 $1,120 $1,580 3,000 $3,984 $4,149 $4,153 2,000 $3,927 $3,861 1,000 2.88% 2
Slide 19: Deposit Details
Deposit Details Change QTD Change YTD ($ in millions, except %) 4Q22 3Q23 4Q23 $ % $ % Relationship Deposits 5,658 6,474 6,839 365 6% 1,181 21% Institutional Deposits 757 337 297 (40) (12)% (460) (61)% Brokered Deposits 629 736 737 1 -% 108 17% Total Deposits 7,044 7,547 7,873 326 4% 829 12% Total G
Slide 20: Loan Composition
Loan Composition Loan Composition (1) ($ in millions, except for percentages) 8.7% 7.7% 7.0% 6.1% 5.5% 16.7% 17.4% 18.5% 19.5% 20.3% 15.1% 15.0% 14.7% 15.8% 16.2% 20.2% 21.3% 22.0% 20.5% 20.8% 7.09% 6.79% 6.77% 6.38% 5.85% 39.3% 38.6% 37.8% 38.0% 37.2% 4Q22 1Q23 2Q23 3Q23 4Q23 Owner Occupied CRE Sin
Slide 21: Capital
Capital Total Capital Ratio 12.19% Regulatory Minimum: 10.00% Common Equity Tier 1 Capital (CET1) Ratio Regulatory Minimum: 6.50% 9.84% 10.60% TCE Ratio (1,3) TCE adj. for HTM Valuation (2,3) 7.18% $20.68 TBV/Share adj. for HTM Valuation (3) Capital Allocation Strategy 2023 Class A Common Stock Repu
Slide 22: Liquidity
Liquidity Our standard liquidity management practices include: Regular testing of lines of credit; satisfactory results have been obtained as of December 31, 2023 Daily monitoring of Federal Reserve Bank account balances as well as large fund providers Daily analysis of lending pipeline and deposit
Slide 23: Supplemental Information
Supplemental Information
Slide 24: Investment Portfolio
Investment Portfolio Balances and Yields (1) Fixed vs. Floating (3) ($ in millions) 1,500 $2.5 September 2023 December 2023 $11.4 $2.4 $242.1 $230.3 $226.6 1,000 15.4% 13.3% 4.17% 3.98% 5.3 yrs 5.0 yrs 500 3.59% Effective Effective Duration Duration 0 $1,057.6 $1,038.8 $1,217.5 84.6% 86.7% 4Q22 3Q23
Slide 25: Interest Rate Sensitivity
Interest Rate Sensitivity Impact on NII from Interest Rate Change (1) As of December 31, 2023 400 4.6% 6.1% 3.8% -1.2% 0% ($ in Millions) 350 -3.1% -6.3% 352 357 300 336 349 326 332 315 250 -200 bps -100 bps -50 bps BASE +50 bps +100 bps +200 bps Net Interest Income Change from base (1) NII and perc
Slide 26: Commercial Real Estate Held for Investment-Detail; Credit Quality
Commercial Real Estate (CRE) Held for Investment-Detail Outstanding as of December 31, 2023 ($ in millions, except %) % Total % Total Income Land and CRE Type FL TX NY Other Total CRE Loans (1) Producing (2) Construction Retail $513 $134 $81 - $728 31.3% 10.5% $728 - Multifamily 345 87 90 35 557 23.
Slide 27: Allowance for Credit Losses, Net Charge-Offs, Criticized Loans
Allowance for Credit Losses ($ in millions) $98.8 $95.5 $12.1 $2.6 $5.3 $1.8 $(4.5) $(20.6) 3Q23 Requirements for Gross Charge- Loan Growth Requirements Recoveries Houston Held- 4Q23 Charge-offs offs for Credit Quality, for-Sale Loans Factor Updates & Macroeconomic Changes Net Charge-Offs Compositio
Slide 28: Net Interest Margin and EPS Trend
Net Interest Margin Margin Bridge 3.57% 3.72% 0.15% 0.16% 0.03% (0.01)% (0.02)% 0.16% 3Q23 Loans Loan Recovery Securities Other Earning Funding Mix Cost of Funds 4Q23 Asset Mix EPS Trend Change in Diluted Earnings (Loss) Per Common Share 1 0.5 $0.66 $0.28 0 $(0.13) -0.5 $(0.18) $(0.51) -1 $(1.14) -1
Slide 29: Glossary
Glossary Investor Update | 29
Slide 30: Appendix
Appendix
Slide 31: Appendix 1 - Non-GAAP Financial Measures Reconciliations
Appendix 1- Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related
Slide 32: Investor Update
Three Months Ended, Years Ended December 31, December 31, September30, June30, March3i, December 31, 2023 2022 ($inthousands, except percentages and per share data) 2023 2023 2023 2023 2022 (audited) Net (loss) income attributable to Amerant Bancorp Inc.” (17,123) $ 22,119 $ 7,308 $20,186 $ 21,973 $
Slide 33: Investor Update
(1) As previously disclosed, the Company adopted CECL in the fourth quarter of 2022, effective as of January 1, 2022. See Form 10-K for more details of the CECL adoption and related effects to quarterly results for each quarter in the year ended December 31, 2022. (2) In the fourth and third quarter
Slide 34: Thank You
Thank You NYSE: AMTB amerantbank.com