Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q4 2020 Earnings Presentation
30 slides from Amerant Bancorp's earnings presentation, Jan 29, 2021
Slide 1: Earnings Call Fourth Quarter 2020 Financial Review
Earnings Call January 29, 2021 Fourth Quarter 2020 Financial Review
Slide 2: Forward-Looking Statements
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 f
Slide 3: Opening Remarks 4Q20 and Full Year
Opening Remarks 4Q20 and Full Year
Slide 4: Performance Highlights 4Q20
• No provision for loan losses recorded in 4Q20 on lower-than-initially-estimated credit deterioration and improved economic conditions • Assigned additional $5.8 million specific reserve related to the Miami-based U.S. coffee trader ('the Coffee Trader") • ALL coverage ratio for 4Q20 strong at 1.90
Slide 5: Fourth Quarter 2020 Results
0.57% 0.16% 0.56% 4Q19 3Q20 4Q20 80.1% 66.5% 69.8% 4Q19 3Q20 4Q20 0.68% 0.08% 0.42% 4Q19 3Q20 4Q20 76.9% 69.3% 85.8% 4Q19 3Q20 4Q20 Return on Assets(6) (ROA) Fourth Quarter 2020 Results Return on Equity (5) (ROE) Adjusted ROE (1)(5) Efficiency Ratio (7) Adjusted ROA(1)(6) Adjusted Efficiency Ratio (
Slide 6: Investment Portfolio Balances and Yields
86.4% 13.6% 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% $1,568.8 $1,317.7 1,225.1 $73.9 $61.7 $58.1 $23.8 $24.4 $24.3 4Q19 3Q20 4Q20 500 1,000 1,500 87.3% 12.7% • Effective duration of 2.4 years stable; lower balances due to pr
Slide 7: Loan Portfolio Highlights
Consumer FI & Acceptances CRE C&I Owner Occupied Single-Family Residential Loan Portfolio Highlights Loan Composition Geographic Mix (Domestic) • Consumer loans increased $57.1 million, or 30%, in 4Q20 including $68.2 million of high-yield loans purchased; single-family residential loans increased $
Slide 8: Credit Quality
0.41% 0.41% 0.95% 1.08% 1.13% 4Q19 1Q20 2Q20 3Q20 4Q20 $52.2 $72.9 $119.7 $116.8 $110.9 0.91% 1.29% 2.04% 1.97% 1.90% 4Q19 1Q20 2Q20 3Q20 4Q20 Net Charge-Offs / Average Total Loans (3) Credit Quality Allowance for Loan Losses (in millions) Non-Performing Assets (1) / Total Assets Allowance for Loan
Slide 9: Interest-Earning Assets and Yields
$5,744 $5,668 $5,872 $5,925 $5,842 $1,739 $1,770 $1,675 $1,469 $1,373 4.47% 4.31% 3.77% 3.64% 3.76% 2.66% 2.59% 2.50% 2.32% 2.29% 4Q19 1Q20 2Q20 3Q20 4Q20 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Interest-Earning Assets (1) • Loan yield increased 12 basis points versus previous quarter, pri
Slide 10: Deposit Highlights
$2,030 $2,484 $2,823 $3,001 $3,122 $3,310 $3,203 2015 2016 2017 2018 2019 3Q20 4Q20 $4,490 $4,093 $3,500 $3,031 $2,635 $2,567 $2,529 2015 2016 2017 2018 2019 3Q20 4Q20 $5,757 $5,842 $6,024 $5,878 $5,732 $3,317 $3,301 $3,590 $3,602 $3,551 $1,758 $1,894 $1,846 $1,767 $1,547 $682 $647 $588 $508 $634 1.
Slide 11: Wholesale Funding & Debt by Maturity
2021 11.3% 2022 12.3% 2023 8.9% 2024 and after 59.7% No contractual maturity 7.8% Wholesale Funding (1) & Debt (2) by Maturity ($ 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 0.65%
Slide 12: Net Interest Income and NIM
$51.3 $49.2 $46.3 $45.4 $48.7 2.74% 2.65% 2.44% 2.39% 2.61% Net Interest Income NIM 4Q19 1Q20 2Q20 3Q20 4Q20 0 10 20 30 40 50 60 • NII up in 4Q20 primarily on: – Lower overall deposit costs and average balances on CDs and brokered deposit – Higher average yields and volumes in loans and increased lo
Slide 13: Noninterest Income
7% 93% 9% 91% $16.0 $21.9 $19.8 $20.3 $11.5 $4.3 $4.3 $3.4 $3.9 $4.2 $3.9 $4.1 $4.3 $4.3 $4.2 $0.7 $9.6 $7.7 $8.6 $1.0 $7.1 $3.9 $4.4 $3.5 $2.1 4Q19 1Q20 2Q20 3Q20 4Q20 0 2 4 6 8 10 12 14 16 18 20 22 Noninterest Income Mix Commentary • $7.6 million lower net gain on sale of securities • Other nonint
Slide 14: Noninterest Expense
$7,906 $7,951 $8,148 $8,083 $7,945 1.81% 1.48% 1.06% 1.39% 1.62% 0.79% 0.79% 0.75% 0.85% 0.97% 2.60% 2.27% 1.81% 2.24% 2.59% 4Q19 1Q20 2Q20 3Q20 4Q20 0 2,000 4,000 6,000 8,000 10,000 $51.7 $44.9 $36.7 $45.5 $51.6 $36.0 $29.3 $21.6 $28.3 $32.3 $15.7 $15.6 $15.1 $17.2 $19.3 829 825 825 807 713 4Q19 1Q
Slide 15: Interest Rate Sensitivity
$196 $198 $201 $205 $208 -50 bps -25 bps BASE +25 bps +50 bps 190 200 210 220 5+ years 25% <1 year 52% 1-3 years 12% 4-5 years 11% Swap 4% Fixed 52% UST 1% Libor 36% Prime 7% Fixed 52% Adjustable 48% Interest Rate Sensitivity • The Company continues to be asset sensitive as over half of loans have f
Slide 16: 2021 Goals
2021 Goals Net Interest Income Noninterest Income Loans Noninterest Expenses Deposits Capital Management Credit Quality • Enhance loan portfolio yield while proactively reducing funding costs to improve NIM • Preserve asset quality • Optimize monitoring of loan portfolio • Proactive assessment of AL
Slide 17: Supplemental Loan Portfolio Information
Supplemental Loan Portfolio Information As of December 31, 2020
Slide 18: Deferrals & Forbearance due to COVID-19 Update
Deferrals & Forbearance due to COVID-19 Update • $43.4 million, or 0.7% of total loans, remained under deferral and/or forbearance; a significant decrease compared to prior quarter • This remaining balance is comprised of: ◦ 31% in Florida, 8% in Texas and 61% in New York ◦ 100% of CRE relief reques
Slide 19: Loan portfolio by industry
Loan portfolio by industry • Diversified portfolio - highest sector concentration, other than real estate, at 10.3% 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, Re
Slide 20: Industries with escalated monitoring: Oil and Gas, Travel, Entertainment and Dining
Industries with escalated monitoring Oil and Gas, Travel, Entertainment and Dining Very limited exposure: • Oil & Gas $37 MM (0.6% of total loans) – extraction support activities • Arts, Entertainment and Recreation $37 MM (0.6% of total loans) - $26 MM Marinas and $7 MM Bowling • Restaurants $37 MM
Slide 21: Industries with escalated monitoring: Commercial Real Estate
Industries with escalated monitoring Commercial Real Estate (CRE) CRE Type FL TX NY Other Total % Total CRE % Total Loans Income Producing (1) Land and Construction Retail $ 611 $ 195 $ 301 $ — $ 1,107 39.0 % 19.0 % $ 1,097 $ 10 Multifamily 324 309 317 — 950 33.5 % 16.3 % 738 212 Office 316 16 58 —
Slide 22: Industries with escalated monitoring: CRE Hotels
Industries with escalated monitoring CRE Hotels (As of 12/31/2020) • CRE Hotel portfolio is limited to 27 properties, majority of which are in popular travel destinations such as Miami Beach (#9 / $103 MM) and New York (#2 / $66 MM) • Three hotel construction loans to borrowers who are experienced h
Slide 23: Industries with escalated monitoring: CRE Retail
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) • Florida and Texas are focused on neighborhood shopping centers or service centers with basic needs related anchor stores, as well as the
Slide 24: Appendices
Appendices
Slide 25: Appendix 1 Non-GAAP Financial Measures Reconciliations
The following table sets forth selected financial information derived from the Company’s interim unaudited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related primarily to tax deductible restructuring costs, the one- time loss on the
Slide 26: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Years Ended December 31, (in thousands) December 31, 2020 September 30, 2020 December 31, 2019 2020 2019 Net income (loss) $ 8,473 $ 1,702 $ 13,475 $ (1,722) $ 51,334 Plus after-tax restructuring costs: Restructuring
Slide 27: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Years Ended December 31, December 31, 2020 September 30, 2020 December 31, 2019 2020 2019 Basic earnings (loss) per share $ 0.21 $ 0.04 $ 0.32 $ (0.04) $ 1.21 Plus: after tax impact of restructuring costs 0.04 0.04 —
Slide 28: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Years Ended December 31, (in thousands, except per share amounts and percentages) December 31, 2020 September 30, 2020 December 31, 2019 2020 2019 Noninterest expense / Average total assets 2.59 % 2.24 % 2.60 % 2.23
Slide 29: Reconciliation footnotes
(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 Amerant
Slide 30: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com