Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q2 2022 Earnings Presentation
26 slides from Amerant Bancorp's earnings presentation, Jul 20, 2022
Slide 1: Earnings Call Second Quarter 2022
Earnings Call July 20, 2022 Second Quarter 2022
Slide 2: Forward-Looking Statements
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 of historical fact are statements t
Slide 3: Performance Highlights 2Q22
3Performance Highlights 2Q22 Business • Net income attributable to the Company of $7.7 million in 2Q22 compared to $16.0 million in 1Q22 • Core pre-provision net revenue (Core PPNR)(1) was $19.4 million in 2Q22 compared to $17.9 million in 1Q22 • Diluted earnings per share (EPS) was $0.23 in 2Q22 co
Slide 4: Performance Highlights 2Q22 (Cont'd) Capital
4 • All capital ratios continue to be substantially above "well-capitalized" levels • Cash dividend of $0.09 per share of Amerant common stock paid out on May 31, 2022 • As of 2Q22, the Company had completed two consecutive $50 million repurchase programs and repurchased an aggregate 3,148,399 Class
Slide 5: Core PPNR - 2Q22
5Core PPNR(1) - 2Q22 (1) Non-GAAP Financial Measure ( 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 Pre-provision net revenue (PPNR) (1) $ 9,707 $ 9,928 Plus: non-
Slide 6: Key Actions Update
6Key Actions Update • 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 7: Key Performance Metrics
7 87.29% 86.59% 1Q22 2Q22 23.2% 20.9% 1Q22 2Q22 12.48% 11.99% 1Q22 2Q22 3.18% 3.28% 1Q22 2Q22 Key Performance Metrics NIB Deposits/ Total Deposits Tier 1 Capital Ratio Net Interest Margin Efficiency Ratio (1) Calculated based upon the average daily balance of total assets (2) Calculated based upon t
Slide 8: Amerant Mortgage (AMTM)
8Amerant Mortgage ("AMTM") • 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 AMTM to 80% from 57.4% at the close of 1Q22, primar
Slide 9: Investment Portfolio Balances and Yields
9 84.7% 15.3% U.S. Gov't sponsored enterprises 38.0% U.S. Gov't agency 31.6% Collateralized loan obligations 0.4% Corporate debt 29.7% Other 0.3% $1,194.1 $1,145.8 $1,124.8 $93.3 $112.0 $238.6 $24.0 $13.4 $10.8 2.14% 2.55% 2.64% 2Q21 1Q22 2Q22 0 500 1,000 1,500 88.1% 11.9% • Effective duration incre
Slide 10: Loan Portfolio Highlights
10 48.6% 48.1% 45.3% 43.3% 41.4% 18.1% 16.9% 17.6% 19.3% 19.4% 16.8% 17.1% 17.3% 16.2% 16.3% 11.0% 11.4% 12.2% 12.7% 13.3% 5.5% 6.5% 7.6% 8.5% 9.6% 3.89% 3.92% 4.10% 4.16% 4.38% 2Q21 3Q21 4Q21 1Q22 2Q22 65.5% 68.3% 69.8% 71.3% 71.7% 18.4% 17.2% 18.4% 19.4% 19.3% 13.1% 11.4% 8.8% 6.5% 6.1%3.0% 3.1% 3
Slide 11: New York Closed LPO - Update
11New York Closed LPO -Update Portfolio decreased by $19 million in 2Q22 to $354.0 million from $373.0 million in 1Q22 As of June 30, 2022 Contractual Maturity Schedule:
Slide 12: Credit Quality
12 $104.2 $83.4 $69.9 $56.1 $52.0 1.86% 1.59% 1.29% 0.99% 0.91% 2Q21 3Q21 4Q21 1Q22 2Q22 0.12% 1.16% 0.52% 0.29% 0.29% 2Q21 3Q21 4Q21 1Q22 2Q22 • Credit quality remains sound and reserve coverage is strong; There were no provision expense or release from the ALL for 2Q22, compared to a release of $1
Slide 13: Deposit Highlights
13 $5,675 $5,626 $5,631 $5,692 $6,203 $2,835 $2,875 $3,013 $3,076 $3,601 $1,243 $1,107 $1,048 $951 $937$531 $433 $387 $347 $366 $1,066 $1,211 $1,183 $1,318 $1,299 0.52% 0.44% 0.41% 0.38% 0.48% 2Q21 3Q21 4Q21 1Q22 2Q22 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 $2,635 $2,529 $2,494 $2,480 2019 2020
Slide 14: Net Interest Income and NIM
14 $50.0 $51.8 $55.8 $55.6 $58.9 2.81% 2.94% 3.17% 3.18% 3.28% Net Interest Income NIM 2Q21 3Q21 4Q21 1Q22 2Q22 0 10 20 30 40 50 60 NII increase in 2Q22 was driven by: • higher average yields on loans, debt securities available for sale and placements • higher average balance of commercial and consu
Slide 15: Interest Rate Sensitivity
15 235 250 260 273 285 -100 bps -50 bps BASE +50 bps +100 bps 150 200 250 (June 30, 2022) Fixed 49% Adjustable 51% 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 base scenario assumes (i)
Slide 16: Noninterest Income
16 $14.0$15.7 $13.4 $12.9 $4.3 $4.3 $4.5 $4.6 $4.6 $4.4 $4.6 $5.0 $4.6 $4.3 $1.3 $0.8 $(2.6) $4.4 $4.0 $3.4 $2.1 $4.7 $62.4 $1.3 $0.5 $3.2 $1.0 $(1.3) $0.9 2Q21 3Q21 4Q21 1Q22 2Q22 0 10 20 30 10% 90% 11% 89% Noninterest Income Mix Noninterest Income Mix Commentary Noninterest income decrease in 2Q22
Slide 17: Noninterest Expense
17 • Noninterest expense increased in 2Q22 primarily due to: – a non-routine expense of $3.2 million related to the market valuation adjustment of an OREO property in New York – a lease impairment charge of $1.6 million related to the closing of a banking center – higher other professional fees prim
Slide 18: Strategic Initiatives Update
18Strategic Initiatives Update Deposits First – Awareness campaigns and different market efforts in the quarter to drive/increase business banking and Amerant Smart Investing traffic – Treasury Management, Retail and Private Banking teams efforts are resulting in increased deposit levels – Realignme
Slide 19: Partnerships
19Partnerships Each is a multi-year partnership which supports and aligns with businesses and organizations well known and deeply rooted in South Florida
Slide 20: Appendices
Appendices
Slide 21: Non-GAAP Financial Measures Reconciliations
21Appendix 1 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented relate
Slide 22: Three Months Ended, Six Months Ended June 30, ($ in thousands) June 30, 2022
22 Three Months Ended, Six Months Ended June 30, ($ in thousands) June 30, 2022 March 31, 2022 June 30, 2021 2022 2021 Total noninterest expenses $ 62,241 $ 60,818 $ 51,125 $ 123,059 $ 94,750 Less: non-routine noninterest expense items Restructuring costs (1) Staff reduction costs (2) 674 765 3,322
Slide 23: Non-GAAP Financial Measures Reconciliations (cont'd)
23Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Six Months Ended June 30, (in thousands, except percentages and per share amounts) June 30, 2022 March 31, 2022 June 30, 2021 2022 2021 Net income attributable to Amerant Bancorp Inc. $ 7,674 $ 15,950 $ 15,962 $ 23
Slide 24: Non-GAAP Financial Measures Reconciliations (cont'd)
24Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Six Months Ended June 30, (in thousands, except percentages, share data and per share amounts) June 30, 2022 March 31, 2022 June 30, 2021 2022 2021 Net income / Average stockholders' equity (ROE) 4.14 % 8.10 % 8.11
Slide 25: Non-GAAP Financial Measures Reconciliations (cont'd)
25Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) (1) Expenses incurred for actions designed to implement the Company’s strategy. These actions include, but are not limited to reductions in workforce, streamlining operational processes, rolling out the Amerant brand, implementation o
Slide 26: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com