Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q4 2021 Earnings Presentation
32 slides from Amerant Bancorp's earnings presentation, Feb 1, 2022
Slide 1: Investor Update As of December 31, 2021
amerantbank.com Investor Update As of December 31, 2021
Slide 2: Forward-Looking Statements
2 amerantbank.com Forward-Looking Statements This presentation contains “forward-looking statements” including statements regarding our outsourcing agreement with FIS, and the Company's ability to achieve savings and greater operational efficiencies, as well as statements with respect to the Company
Slide 3: Investment Opportunity Highlights
3 amerantbank.com Investment Opportunity Highlights – Established franchise/presence in high-growth markets – Miami and Houston – Strong and diverse deposit base; deposits first focus – Strong reserve coverage and disciplined credit culture – Significant fee income capabilities – Business Transforma
Slide 4: About Us
4 amerantbank.com 98% 2% 56% 44% Domestic • Second largest community bank headquartered in Florida About Us • 24 branches throughout South Florida and Houston • $5.6 billion • $7.6 billion • Coral Gables, FL • 763 FTEs (AMTB: 691 / AMTM: 72) • $2.2 billion under management/ custody • Founded in 1979
Slide 5: Growing and Attractive Markets
5 amerantbank.com 4.0% 6.0% 3.2% Miami Houston U.S. Te xa s 11.9% 22.9% 8.3% Miami Houston U.S. June 30, 2021 Growing and Attractive Markets (1) The Company closed its Wellington branch on October 15, 2021 (2) Deposit Market Share data and number of branches is as of June 30, 2021. For the current n
Slide 6: Performance Highlights 4Q21
6 amerantbank.com Performance Highlights 4Q21 (1) Non-GAAP Financial Measure. See Slide 9 for a reconciliation to GAAP. • All capital ratios are above "well capitalized" levels • Completed previously announced clean-up merger to simplify capital structure; declared $0.06 cash dividend in December 20
Slide 7: Updates 1Q22
7 amerantbank.com Updates 1Q22 • Declared a $0.09 cash dividend payable in February 2022 • Successfully completed the previously announced $50 million Class A shares buyback program; Board authorized a new share repurchase program for up to $50 million in share repurchases • Sold $57.3 million in lo
Slide 8: Shares Outstanding - Post Merger
8 amerantbank.com Shares Outstanding -Post Merger Class A + Class B outstanding prior to Merger on 10/28/21: 37,526,799 Reduction from Class B conversion 423,556 Class A fractional shares/odd lots (99 or less) cash out 281,725 Class A Repurchase Program (1) 1,545,512 Others (2) 44,804 Issued and out
Slide 9: Core PPNR - 4Q21
9 amerantbank.com Core PPNR(1) - 4Q21 CORE PPNR(1) increased 3.4% compared to 3Q21 (1) Non-GAAP Financial Measure (( 4Q21 3Q21 Net income attributable to Amerant Bancorp Inc. 65,469 $ 17,031 Plus: reversal of provision for loan losses (6,500) (5,000) Plus: provision for income tax expense 20,172 5,4
Slide 10: Key Actions - 4Q21
10 amerantbank.com Key Actions - 4Q21 Several key actions of note, among others: – Focus on reducing non performing loans resulted in significant decline to $49.8 million as of December 31, 2021, compared to $82.7 million as of September 30, 2021 – Closed Wellington branch in October 2021; signed le
Slide 11: Focused on Key Performance Metrics
11 amerantbank.com 74.2% 41.4% 3Q21 4Q21 21.5% 21.0% 3Q21 4Q21 13.3% 13.5% 3Q21 4Q21 2.94% 3.17% 3Q21 4Q21 Focused on Key Performance Metrics Robust Deposit Base Robust Capital Position Higher Operating Profitability Rationalizing Cost Structure (1) Calculated based upon the average daily balance of
Slide 12: Amerant Mortgage (AMTM)
12 amerantbank.com • In the fourth quarter of 2021, AMTM received 166 applications and funded 61 loans totaling $32 million • Since starting operations in May 2021, AMTM received 299 applications and funded 109 loans totaling $52.6 million Data as of December 31, 2021 In Thousands Highlights Amerant
Slide 13: Investment Portfolio Balances and Yields
13 amerantbank.com 89.4% 10.6% U.S. Gov't sponsored enterprises 38.4% U.S. Gov't agency 30.8% Corporate debt 30.4% Other 0.4% $1,225.1 $1,220.4 $1,175.3 $58.1 $130.5 $118.2 $24.3 $23.9 $0.3 2.21% 2.25% 2.37% 4Q20 3Q21 4Q21 0 500 1,000 1,500 86.4% 13.6% • Effective duration increased vs. 4Q20 due to
Slide 14: Loan Portfolio Highlights
14 amerantbank.com 48.6% 48.5% 48.6% 48.1% 45.3% 20.1% 19.5% 18.1% 16.9% 17.6% 16.2% 16.3% 16.8% 17.1% 17.3% 10.9% 10.9% 11.0% 11.4% 12.2% 4.2% 4.8% 5.5% 6.5% 7.6% 3.76% 3.77% 3.89% 3.92% 4.10% 4Q20 1Q21 2Q21 3Q21 4Q21 66.2% 66.1% 65.5% 68.3% 69.8% 17.8% 18.0% 18.4% 17.2% 18.4% 12.9% 12.9% 13.1% 11.
Slide 15: Credit Quality
15 amerantbank.com $110.9 $110.9 $104.2 $83.4 $69.91.90% 1.93% 1.86% 1.59% 1.29% 4Q20 1Q21 2Q21 3Q21 4Q21 0.40% —% 0.12% 1.16% 0.52% 4Q20 1Q21 2Q21 3Q21 4Q21 • Credit quality remains sound and reserve coverage is strong; released $6.5 million from the ALL in 4Q21 • NPLs to total loans declined to 0.
Slide 16: Deposit Highlights
16 amerantbank.com $5,732 $5,678 $5,675 $5,626 $5,631 $2,679 $2,759 $2,835 $2,875 $3,013 $1,547 $1,388 $1,243 $1,107 $1,048 $634 $553 $531 $433 $387 $872 $978 $1,066 $1,211 $1,183 0.69% 0.60% 0.52% 0.44% 0.41% 4Q20 1Q21 2Q21 3Q21 4Q21 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 $3,031 $2,635 $2,529
Slide 17: Net Interest Income and NIM
17 amerantbank.com $48.7 $47.6 $50.0 $51.8 $55.8 2.61% 2.66% 2.81% 2.94% 3.17% Net Interest Income NIM 4Q20 1Q21 2Q21 3Q21 4Q21 0 10 20 30 40 50 60 NII increased in 4Q21 primarily due to: • Higher average yields, including prepayment fees • Higher average balances on loans • Lower average balances o
Slide 18: Noninterest Income
18 amerantbank.com $11.5 $14.2 $15.7 $13.4 $4.2 $4.1 $4.3 $4.3 $4.5 $4.2 $4.6 $4.4 $4.6 $5.0 $1.0 $2.6 $1.3 $2.1 $2.9 $5.7 $4.5 $5.4 $62.4 4Q20 1Q21 2Q21 3Q21 4Q21 0 2 4 6 8 10 12 14 16 18 20 22 24 9% 91% 12% 88% Noninterest Income Mix Noninterest Income Mix Commentary Noninterest income increased i
Slide 19: Noninterest Expense
19 amerantbank.com • Noninterest expense increased in 4Q21 primarily due to: – Higher consulting, legal and other professional fees related to clean-up merger and expenses related to consulting services received from FIS – Higher salaries and employee benefits due to new hires primarily in AMTM and
Slide 20: Interest Rate Sensitivity
20 amerantbank.com $211 $214 $217 $221 $223 -50 bps -25 bps BASE +25 bps +50 bps 160 180 200 (December 31, 2021) Fixed 50% Adjustable 50% Interest Rate Sensitivity By Interest TypeBy Rate Type By Repricing Term (1) NII and percentage change represents the base scenario of net interest income. The ba
Slide 21: 4Q21 Initiatives Update
21 amerantbank.com 4Q21 Initiatives Update • Continued reducing brokered deposits to total deposits towards our target of 5%; loan to deposit ratio under 100% • Added experienced private banking team to drive deposit growth • Continued work on enhancing a completely digital onboarding platform • Tes
Slide 22: 4Q21 Initiatives Update
22 amerantbank.com 4Q21 Initiatives Update Focused on increasing profitability and shareholder value • The Company completed a clean-up merger to simplify its capital structure, whereby: – Each outstanding share of Class B common stock was converted to 0.95 of a share of Class A common stock – A new
Slide 23: Brand Awareness: New Downtown Branch & I-95 High-Impact Walls
23 amerantbank.com Brand Awareness: New Downtown Branch & I-95 High-Impact Walls
Slide 24: Appendices
amerantbank.com Appendices
Slide 25: Appendix Summary Financial Statements
25 amerantbank.com Appendix 1 Summary Financial Statements (1) Includes debt securities available for sale, held to maturity and equity securities with readily determinable fair value not held for trading. FHLB and FRB stock are included in "Other Assets" (2) Loans held for sale in connection with A
Slide 26: Appendix Summary Financial Statements (cont'd)
26 amerantbank.com Appendix 1 Summary Financial Statements (cont’d) Years Ended December 31, (in thousands) July 13, 1905 2020 2019 2018 Total Interest Income $247,844 $260,554 $312,974 $309,358 Total Interest Expense 42,703 71,002 99,886 90,319 Net Interest Income $205,141 $189,552 $161,826 $219,03
Slide 27: Explanation of Certain Non-GAAP Financial Measures
27 amerantbank.com Explanation of Certain Non-GAAP Financial Measures This Presentation contains certain adjusted financial information, and their effects on noninterest income, noninterest expense, income taxes, net income, Core pre-provision net revenue, ROA and ROE and certain other financial rat
Slide 28: Non-GAAP Financial Measures Reconciliations
28 amerantbank.com (in thousands) 2021 2020 2019 2018 Net income (loss) attributable to Amerant Bancorp Inc. $ 112,921 $ (1,722) $ 51,334 $ 45,833 Plus: (reversal of) provision for loan losses (16,500) 88,620 (3,150) 375 Plus: provision for income tax expense (benefit) (1) 33,709 (2,612) 12,697 11,7
Slide 29: Non-GAAP Financial Measures Reconciliations (cont'd)
29 amerantbank.com (in thousands) 2021 2020 2019 2018 Net income (loss) attributable to Amerant Bancorp Inc. $ 112,921 $ (1,722) $ 51,334 $ 45,833 Plus after-tax restructuring costs: Restructuring costs before income tax effect 7,057 11,925 5,046 6,395 Income tax effect (8) (1,652) (7,187) (1,001) (
Slide 30: Non-GAAP Financial Measures Reconciliations (cont'd)
30 amerantbank.com Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d)* 2021 2020 2019 2018 Net income (loss) / Average total assets (ROA) 1.50 % (0.02) % 0.65 % 0.55 % Plus: after tax impact of restructuring costs 0.07 % 0.06 % 0.05 % 0.06 % Plus: after tax impact of total spin-off cost
Slide 31: Non-GAAP Financial Measures Reconciliations (cont'd)
31 amerantbank.com Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d) (in thousands, except per share data and percentages) 2021 2020 2019 2018 Tangible common equity ratio: Stockholders' equity $ 831,873 $ 783,421 $ 834,701 $ 747,418 Less: Goodwill and other intangibles (11) (22,528) (
Slide 32: Thank you
AMERANT amerantbank.com Thank you