Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Investor Presentation (September 2022)
32 slides from Amerant Bancorp's investor presentation, September 2022
Slide 1: Investor Update
Investor Update September 2022
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers 2 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 o
Slide 3: Investment Opportunity Highlights
Investment Opportunity Highlights 3 – Established franchise with high scarcity value; presence in attractive, high-growth markets of Miami, Tampa and Houston – Strong and diverse deposit base; deposits first focus – Strong reserve coverage and disciplined credit culture – Net interest income continu
Slide 4: About Us
About Us 4 Financial Highlights Six Months (in millions, except per share data Ended June 30, 2021 2020 2019 and percentages) 2022 Balance Sheet • Founded in 1979 History • Completed IPO in Dec. 2018 Assets $ 8,151 $ 7,638 $ 7,771 $ 7,985 • Rebranded as Amerant in June 2019 Loans $ 5,847 $ 5,568 $ 5
Slide 5: Growing and Attractive Markets
Growing and Attractive Markets 5 (1) (2) Branch Footprint Deposit Market Share Market Demographics June 2022 June 30, 2021 17 banking centers Deposits % of Market Market ($mm) AMTB Share % (3) Miami-Dade, FL 4,686 82.1 2.6 2012 – 2022 Population Change Florida Broward, FL $326 5.7 0.5 18.7% 10.7% Pa
Slide 6: Performance Highlights 2Q22
6 Performance Highlights 2Q22 • Net income attributable to the Company of $7.7 million in 2Q22 compared to $16.0 million in 1Q22 (1) • Core pre-provision net revenue (Core PPNR) was $19.4 million in 2Q22 compared to $17.9 million in 1Q22 • Diluted earnings per share (EPS) was $0.23 in 2Q22 compared
Slide 7: Select Updates 3Q22
7 Select Updates 3Q22 • Cash dividend of $0.09 per share of Amerant common stock paid out on August 31, 2022 • Banking center updates: – Opened new Hialeah, FL location – Received OCC approval to open a new branch in Key Biscayne, FL – Opening in University Place in Houston in 4Q22 – closing South S
Slide 8: Shares Outstanding
Shares Outstanding 8 Change in shares outstanding follows: Class A balance at March 31, 2022 34,350,822 (1) Class A repurchase programs (611,525) (2) Net Issuances 20,307 Balance at June 30, 2022 33,759,604 (1) Shares were bought back under the "New Class A Common Stock Repurchase Program" approved
Slide 9: Core PPNR - 2Q22
9 Core PPNR - 2Q22 (1) (in thousands) 2Q22 1Q22 Net income attributable to Amerant Bancorp Inc. $ 7,674 $ 15,950 Plus: provision for (reversal of) loan losses — (10,000) Plus: provision for income tax expense 2,033 3,978 (1) Pre-provision net revenue (PPNR) $ 9,707 $ 9,928 Plus: non-routine noninter
Slide 10: Key Actions 2Q22
Key Actions 2Q22 10 • Reduced non-performing loans (“NPL”) to $25.2 million as of 2Q22 compared to $47.0 million as of 1Q22. • As part of the NPL reduction, the Company received a $5.5 million payment and charged off the remaining $3.6 million on the previously disclosed Coffee Trader relationship.
Slide 11: Key Performance Metrics
Key Performance Metrics 11 ALL / Total NIB Deposits/ Net Interest Efficiency (1) (2) Tier 1 Capital ROA ROE Loans held for Total Deposits Margin Ratio Ratio (3) investment 23.2% 87.29% 86.59% 0.84% 12.48% 11.99% 0.99% 8.10% 0.91% 20.9% 3.18% 3.28% 0.39% 4.14% 1Q22 2Q22 1Q22 2Q22 1Q22 2Q22 1Q22 2Q22
Slide 12: Amerant Mortgage ("AMTM")
12 Amerant Mortgage ("AMTM") Highlights Data as of June 30, 2022 In Thousands • In 2Q22, AMTM received 285 applications, funded 253 loans totaling $118.6 million • The current pipeline shows $77.8 million or 119 applications as of July 11, 2022 • In 2Q22, Amerant increased its ownership interest in
Slide 13: Investment Portfolio
Investment Portfolio 13 Balances and Yields (1) Highlights ($ in millions) • Effective duration increased vs. 1Q22 due to expected 1,500 $24.0 $10.8 $13.4 and actual lower MBS prepayments related to the $93.3 $112.0 $238.6 1,000 increase in interest rates 2.55% 2.64% 2.14% • Net after-tax unrealized
Slide 14: Loan Portfolio Highlights
14 Loan Portfolio Highlights Geographic Mix (Domestic) (1)(2) (1) Loan Composition Geographic Mix 5.5% 6.5% 7.6% 8.5% 9.6% 11.0% 11.4% 12.2% 12.7% 13.3% 3.0% 3.1% 3.0% 2.9% 2.9% 11.4% 8.8% 6.5% 6.1% 16.8% 17.1% 13.1% 17.3% 16.2% 16.3% 18.4% 19.4% 19.3% 18.4% 17.2% 4.38% 18.1% 16.9% 17.6% 19.3% 19.4%
Slide 15: Credit Quality
Credit Quality 15 Non-Performing Assets (1) / Total Assets Allowance for Loan Losses ($ in millions) 1.61% $104.2 1.24% $83.4 0.78% 1.86% $69.9 0.73% 1.59% $56.1 $52.0 0.39% 1.29% 0.99% 0.91% 2Q21 3Q21 4Q21 1Q22 2Q22 2Q21 3Q21 4Q21 1Q22 2Q22 Allowance for Loan Losses ALL as a % of Total Loans held f
Slide 16: Deposit Highlights
Deposit Highlights 16 Deposit Composition Mix by Country of Domicile ($ in millions, except for percentages) International Deposits ($ in millions) 7,000 $6,203 6,000 $5,675 $5,626 $5,631 $5,692 $1,299 $1,066 $1,211 $1,183 $1,318 $2,635 40% $2,529 $2,494 $2,480 5,000 $366 $531 $433 $387 $347 $937 4,
Slide 17: Net Interest Income and NIM
17 Net Interest Income and NIM Net Interest Income (NII) and NIM (%) Commentary ($ in millions, except for percentages) $58.9 60 $55.8 $55.6 NII increase in 2Q22 was driven by: $51.8 $50.0 50 • higher average yields on loans, debt securities available for sale 40 and placements 3.28% 3.17% 3.18% • h
Slide 18: Interest Rate Sensitivity
18 Interest Rate Sensitivity (1) Impact on NII from Interest Rate Change (1) NII Sensitivity Over Time (June 30, 2022) 5.2% 9.9% 0 -3.7% -9.7% 250 ($ in Millions) 200 260 273 285 235 250 150 -100 bps -50 bps BASE +50 bps +100 bps Net Interest Income Change from base Loan Portfolio & Repricing Detail
Slide 19: Noninterest Income Mix
19 Noninterest Income Mix Noninterest Income Mix Commentary ($ in millions) $77.3 Noninterest income decrease in 2Q22 was driven by: 30 • Net unrealized losses on marketable equity securities of $62.4 $2.6 million in the 2Q22 and lower fee income from client derivatives 20 Partially offset by: $15.7
Slide 20: Noninterest Expense
Noninterest Expense 20 Noninterest Expense Mix Commentary ($ in millions, except for FTEs) • Noninterest expense increased in 2Q22 primarily due to: 70 – a non-routine expense of $3.2 million related to the $62.2 market valuation adjustment of an OREO property in New $60.8 York 60 $55.1 – a lease im
Slide 21: Strategic Initiatives Update
Strategic Initiatives Update 21 • Awareness campaigns and different market efforts in the quarter to drive/increase business banking and Amerant Smart Investing traffic Deposits First • Treasury Management, Retail and Private Banking teams efforts are resulting in increased deposit levels • Realignm
Slide 22: ESG Framework
ESG Framework 22 To visit our ESG Page and see our 2021 Sustainability Report, please follow this link: https://www.amerantbank.com/esg amerantbank.com
Slide 23: Partnerships
Partnerships 23 Each is a multi-year partnership which supports and aligns with businesses and organizations well known and deeply rooted in South Florida amerantbank.com
Slide 24: Appendices
Appendices amerantbank.com
Slide 25: Appendix 1 Summary Financial Statements
Appendix 1 25 Summary Financial Statements As of June 30, As of December 31, (in millions) 2022 2021 2020 2019 Assets Cash and cash equivalents $354.1 $274.2 $214.4 $121.3 (1) Total Securities 1,374.3 1,293.7 1,307.6 1,666.5 (2) Mortgage Loans Held for Sale, at fair value 54.9 14.9 — — (3) Loans hel
Slide 26: Appendix 1 Summary Financial Statements (cont’d)
Appendix 1 26 Summary Financial Statements (cont’d) Six Months Ended June 30, Years Ended December 31, (in thousands) 2022 2021 2020 2019 Total Interest Income $136,265 $247,844 $260,554 $312,974 Total Interest Expense 21,675 42,703 71,002 99,886 Net Interest Income $114,590 $205,141 $189,552 $213,0
Slide 27: Appendix 2 Non-GAAP Financial Measures Reconciliations
Appendix 2 27 Non-GAAP Financial Measures Reconciliations Explanation of Certain Non-GAAP Financial Measures This presentation contains certain adjusted financial information or non-GAAP financial measures, including “pre-provision net revenue (PPNR)”, “core pre-provision net revenue (Core PPNR)”, “
Slide 28: Non-GAAP Financial Measures Reconciliations (cont’d)
28 Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d)* Six Months Ended June 30, Years Ended December 31, (in thousands) 2022 2021 2020 2019 Net income (loss) attributable to Amerant Bancorp Inc. $ 23,624 $ 112,921 $ (1,722) $ 51,334 Plus: (reversal of) provision for loan losses (10,000
Slide 29: Non-GAAP Financial Measures Reconciliations (cont’d)
Appendix 2 29 Non-GAAP Financial Measures Reconciliations (cont’d)* Six Months Ended June 30, Years Ended December 31, (in thousands) 2022 2021 2020 2019 Net income (loss) attributable to Amerant Bancorp Inc. $ 23,624 $ 112,921 $ (1,722) $ 51,334 Plus after-tax non-routine items in noninterest expen
Slide 30: Non-GAAP Financial Measures Reconciliations (cont’d)
30 Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d)* Six Months Ended June 30, Years Ended December 31, 2022 2021 2020 2019 Net income (loss) / Average total assets (ROA) 0.61 % 1.50 % (0.02)% 0.65 % Plus: after tax impact of non-routine items in noninterest expense 0.30 % 0.07 % 0.06
Slide 31: Non-GAAP Financial Measures Reconciliations (cont’d)
Appendix 2 31 Non-GAAP Financial Measures Reconciliations (cont’d) Six Months Ended June 30, Years Ended December 31, (in thousands, except per share data and percentages) 2022 2021 2020 2019 Tangible common equity ratio: Stockholders' equity $ 711,450 $ 831,873 $ 783,421 $ 834,701 (13) Less: Goodwi
Slide 32: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com
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