Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q3 2024 Earnings Presentation
36 slides from Amerant Bancorp's earnings presentation, Oct 24, 2024
Slide 1: Third Quarter Earnings Presentation
Third Quarter Earnings Presentation October 24, 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: 3Q24 Highlights: Balance Sheet
3Q24 Highlights Balance Sheet • Total assets were $10.38 billion, up by $634.2 million, compared to $9.75 billion in 2Q24 • Cash and cash and equivalents were $671.8 million, up by $361.5 million, compared to $310.3 million in 2Q24 • Total investments remained unchanged at $1.54 billion • Total gros
Slide 4: 3Q24 Highlights: Income Statement
3Q24 Highlights Income Statement • Net loss attributable to the Company was $48.2 million; Net Diluted loss per share was $1.43, compared to diluted earnings per share of $0.15 in 2Q24 • NIM was 3.49% down by 7 basis points compared to 3.56% in 2Q24 • Net Interest Income (“NII”) was $81.0 million, u
Slide 5: 3Q24 Highlights: Other Items of Note
3Q24 Highlights Other Items of Note • On September 27, 2024, the Company completed a public offering of 8,684,210 shares of its Class A voting common stock, at a price to the public of $19.00 per share, which included 784,210 shares issued upon the exercise in full by the underwriters of their optio
Slide 6: Shares Outstanding
Shares Outstanding Changes in Shares Outstanding: Beginning Balance at June 30, 2024 33,562,756 Repurchases of Class A Common Stock (1) (143,674) Common stock issuance (2) 8,684,210 Net Issuances (3) 331 Balance at September 30, 2024 42,103,623 (1) Repurchases of Class A Common Stock under the Compa
Slide 7: Select Performance Metrics
Select Performance Metrics NIB Deposits/ Efficiency ACL / Total Loans ROA ROE Total Deposits Ratio held for investment 228.74% 1.41% 0.21% 2.68% 1.15% 18.7% 18.3% 74.21% (1.92)% (24.98)% 2Q24 3Q24 2Q24 3Q24 2Q24 3Q24 2Q24 3Q24 2Q24 3Q24 Excluding non-routine items ($5.7 million in non-routine nonint
Slide 8: Investment Portfolio
Investment Portfolio Expected Prepayments & Maturities Balances and Yields (1) ($ in millions) ($ in millions) 75.0 2,000 $2.5 $2.6 49.7 1,500 $2.4 $— 50.0 $219.6 33.5 35.3 35.9 $230.3 4.19% 1,000 25.0 4.31% 4.57% 4.67% 4.68% 4.83% 500 3.98% $1,033.8 $1,269.4 $1,476.4 0 0.0 3Q23 2Q24 3Q24 4Q24 1Q25
Slide 9: Loan Portfolio Highlights
Loan Portfolio Highlights Loan Composition (1) Geographic GeographicMix (1) Mix(Domestic) 6.1% 5.4% 4.8% 4.2% 3.8% 2.0% 1.8% 1.7% 1.6% 1.5% 4.0% 4.5% 3.9% 4.2% 4.7% 3.4% 3.0% 3.3% 3.0% 2.9% 19.5% 20.4% 21.6% 21.7% 21.2% 12.9% 11.6% 10.5% 18.5% 17.3% 15.8% 16.2% 17.0% 16.4% 16.3% 7.09% 7.05% 7.08% 7.
Slide 10: CRE Loans Held For Investment - Detail
CRE Loans Held For Investment - Detail Outstanding as of September 30, 2024 ($ in millions) Land and CRE Type FL TX NY Other Total % Total CRE % Total Loans (1) Income Producing (2) Construction Retail $ 626 $ 23 $ 84 $ — $ 733 29.8 % 10.6 % $ 729 $ 4 Multifamily $ 322 $ 76 $ 84 $ — $ 482 19.5 % 6.9
Slide 11: Credit Quality
Credit Quality Allowance for Credit Losses NPLs/ Total Loans and NPAs / Total Assets ($ in millions) 1.52% 1.38% $98.8 $95.5 $96.1 $94.4 $79.9 0.46% 0.47% 0.43% 1.24% 1.25% 0.57% 0.56% 0.51% 1.40% 1.39% 1.38% 1.41% 1.15% 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Allowance for Credit Losses A
Slide 12: Allowance for Credit Losses
Allowance for Credit Losses ($ in millions) $94.4 $79.9 $14.7 $3.2 $0.9 $2.3 $(35.6) 2Q24 Gross Charge-offs Recoveries Requirement for Credit Quality and Loan Growth 3Q24 Charge-offs Macroeconomic Changes Remarks: Gross charge-off includes $17.3 million that was provisioned in the previous period. 1
Slide 13: Special Mention Loans
Special Mention Loans Special Mention Loans ($ in millions) $95.3 $76.4 $5.5 $(2.9) $(3.3) $(18.2) 2Q24 Downgrades to Upgrades to Pass Downgrades to Payoffs/Paydowns 3Q24 Special Mention Substandard Remarks: • The downgrade to Special Mention is one relationship with four owner-occupied loans totali
Slide 14: Non-Performing Loans
Non-Performing Loans Non-Performing Loans ($ in millions) $114.9 $101.0 $86.3 $(3.2) $(35.6) $(33.6) 2Q24 Downgrades to Charge-offs Sold Payoffs/Paydowns 3Q24 Substandard Remarks: • The downgrades to substandard are composed mainly of six commercial/owner-occupied loans and two CRE loan, in addition
Slide 15: Well Diversified and Stable Deposit Mix
Well Diversified and Stable Deposit Mix Deposit Composition Mix by Country of Domicile ($ in millions) Domestic Deposits 68% of Total Deposits $8,111 ($ in millions) Approx. avg. acct balance: $110,000 $7,895 $7,878 $7,816 8,000 $7,547 $1,482 $1,427 $1,397 $1,465 $1,370 5,000 7,000 $650 $702 6,000 $
Slide 16: Net Interest Income and NIM
Net Interest Income and NIM 16 NII and NIM (%) ($ in millions) $78.6 $81.7 $79.4 $81.0 $78.0 80 70 60 50 40 3.72% 3.57% 3.51% 3.56% 30 3.49% 20 10 0 3Q23 4Q23 1Q24 2Q24 3Q24 Net Interest Income NIM Total Deposits Beta Evolution Cost of Funds 2.00 0.54 0.56 3Q23 4Q23 1Q24 2Q24 3Q24 0.49 0.49 Cost of
Slide 17: Interest Rate Sensitivity
Interest Rate Sensitivity 17 Impact on NII from Interest Rate Change (1)(2) Impact on AFS from Interest Rate Change (1) As of September 30, 2024 Expected AOCL Improvement 5.8% 7.4% 4.0% 9.2% — 480 0% 5.0% (9.4)% (4.1)% (2.0)% 2.6% 0% (2.7)% (5.4)% (10.9)% ($ in Millions) ($ in Millions) 240 (8,700)
Slide 18: Non-Interest Income Mix
Non-Interest Income Mix Non-Interest Income Mix Assets Under Management and Custody ($ in millions) 50 3Q23 3Q24 25 $21.9 $19.5 $19.4 $0.2 $7.0 $14.5 $3.5 $1.2 $4.4 $6.5 $0.8 $0.5 $2.4 $7.2 $7.8 19% 17% $3.8 $5.6 $4.4 $4.5 $4.2 $4.3 $4.5 $5.1 $5.3 $5.0 $4.4 $4.3 0 $(0.1) $(0.1) $(0.2) $(0.2) $(0.1)
Slide 19: Non-Interest Expense
Non-Interest Expense Non-Interest Expense Mix Non-routine Noninterest Expenses ($ in millions, except for FTEs) ($ in millions) 60 120 $109.7 $43.1 40 $37.5 90 $76.2 $73.3 20 $64.4 $76.7 $66.6 $6.3 $5.6 $5.7 60 $3.4 $41.2 $5.6 $0.7 $5.6 $0.0 $1.3 $39.4 0 $0.9 $33.1 $33.6 3Q23 4Q23 1Q24 2Q24 3Q24 Oth
Slide 20: EPS Trend
EPS Trend Change in Diluted Earnings Per Common Share $1.00 $0.45 $0.50 $0.15 $0.01 $0.01 $— $(0.02) $(0.50) $(1.00) $(1.50) $(1.43) $(2.00) $(2.03) $(2.50) 2Q24 PPNR Net Non-routine Income Tax Capital Raise Repurchases and 3Q24 (*) Items Expense Other (*) Refers to core PPNR which is a non-GAAP Fin
Slide 21: Closing Remarks
Closing Remarks • Signed LOI for a second banking center in Miami Beach (expected mid-2025 opening) • Signed agreement for second Tampa office in downtown Tampa (expected mid-2025 opening) • Hired new Market President for Broward County who will oversee Amerant’s ongoing expansion in this key market
Slide 22: Supplemental Loan Portfolio Information
Supplemental Loan Portfolio Information
Slide 23: Loans Held for Investment Portfolio by Industry
Loans Held for Investment Portfolio by Industry September 30, 2024 Non-Real Highlights ($ in millions) Real Estate Estate Total % Total Loans Financial Sector (1) $ 33 $ 447 $ 480 6.9 % • Diversified portfolio - highest Construction and Real Estate & Leasing: sector concentration, other than Commerc
Slide 24: CRE Retail - Detail
CRE Retail - Detail As of September 30, 2024 Retail - LTV CRE Retail (1) CRE Retail - Single Tenant (1) Food and Health Retail; 10% Retail Storefront; 3% 60% Theme/Festival Neighborhood Center; 36% 50% Center; 11% Tobacco & CBD; 25% 40% 35% 33% Clothing; 27% 30% 18% Single Tenant; 8% Restaurant; 8%
Slide 25: CRE Office - Detail
CRE Office - Detail As of September 30, 2024 CRE Office (1) Office - LTV 60% Texas; 10% New York; 10% 50% 47% 40% 34% 30% 20% 11% South Florida; 80% 10% 8% —% 0% 50% or 51-60% 61-70% 71-80% 81% or Total: $412 million less more Loan Portfolio Percentage: 5.9% (1) CRE office loans held for investment
Slide 26: Appendices
Appendices
Slide 27: Non-GAAP Financial Measures Reconciliations
Appendix 1 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related
Slide 28: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended ($ in thousands) September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Total noninterest expense $ 76,208 $ 73,302 $ 66,594 $ 109,702 $ 64,420 Less: non-routine noninterest expense items
Slide 29: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended, December ($ in thousands, except percentages and per share data) September 30, 2024 June 30, 2024 March 31, 2024 31, 2023 September 30, 2023 Net (loss) income attributable to Amerant Bancorp Inc. $ (48,164) $ 4,963 $
Slide 30: 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) September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Net (loss) income/ Average stockholders' equity (ROE) (24.98)% 2.68 % 5.69
Slide 31: 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) September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Tangible common stockholders' equity $ 878,522 $ 709,761 $ 713,150 $ 711,03
Slide 32: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) (1) In the third, second and first quarter of 2024 and in the fourth and third quarter of 2023, includes $17.9 million, $17.7 million, $12.4 million, $12.0 million and $7.4 million of provision for credit losses on loans, respectively.
Slide 33: Income Statement Highlights - 3Q24 vs 2Q24
Income Statement Highlights - 3Q24 vs 2Q24 ($ in thousands) 3Q24 2Q24 Change Total Interest Income Loans $ 129,752 $ 124,117 $ 5,635 Investment securities 17,127 16,950 177 Interest earning deposits with banks and other interest income 4,758 5,342 (584) Total Interest Expense — Interest bearing dema
Slide 34: Glossary
Glossary 34 • 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 35: Glossary (cont'd)
Glossary (cont'd) 35 • TCE Ratio: 3Q24 includes $13.0 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 36: AMERANT BANK Imagine tomorrow.
AMERANT BANK Imagine tomorrow.