Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q2 2021 Earnings Presentation
28 slides from Amerant Bancorp's earnings presentation, Jul 21, 2021
Slide 1: Second Quarter 2021 Financial Review
Earnings Call July 22, 2021 Second Quarter 2021 Financial Review
Slide 2: Forward-Looking Statements
2 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 historica
Slide 3: Performance Highlights 2Q21
3 • All capital ratios are above "well capitalized" levels • As of June 30, 2021, approximately $8.4 million Class B common stock were repurchased, representing 502,232 shares at a weighted average price of $16.47 Performance Highlights 2Q21 Capital Business • Net income attributable to the company
Slide 4: Core PPNR - 2Q21
4Core PPNR(1) - 2Q21 CORE PPNR (1) was $16.9 million, an increase of 7.4% compared to 1Q21 (1) Non-GAAP (2) In the second quarter of 2021, includes expenses in connection with the departure of our Chief Operating Officer and other actions. (( 2Q21 1Q21 Net income $ 15,962 $ 14,459 Plus: (reversal of
Slide 5: Key Actions - 2Q21
5Key Actions - 2Q21 Several key actions of note, among others: – Recorded $3.8 million gain on the sale of $95.1 million of PPP loans – Reduced Allowance for Loan Losses by $5.0 million on improved macro-economic conditions and credit indicators in our markets – Launched operations at Amerant Mortga
Slide 6: Focused on Key Performance Metrics
6 70.7% 77.8% 1Q21 2Q21 17.2% 18.8% 1Q21 2Q21 12.9% 12.9% 1Q21 2Q21 2.66% 2.81% 1Q21 2Q21 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 total assets. (2
Slide 7: Investment Portfolio Balances and Yields
7 88.1% 11.9% U.S. Gov't sponsored enterprises 45.5% U.S. Gov't agency 23.8% Municipals 0.2% Corporate debt 30.2% US treasury 0.2% $1,519.8 $1,190.2 $1,194.1 $65.6 $104.7 $93.3 $24.4 $24.0 $24.0 2.38% 2.15% 2.14% 2Q20 1Q21 2Q21 0 500 1,000 1,500 84.8% 15.2% • Effective duration decreased vs. 1Q21 du
Slide 8: Loan Portfolio Highlights
8 50.2% 50.4% 48.6% 48.5% 48.5% 21.5% 20.5% 20.1% 19.5% 18.1% 16.0% 15.8% 16.2% 16.3% 16.8% 10.1% 10.1% 10.9% 10.9% 11.0% 2.2% 3.2% 4.2% 4.8% 5.5% 3.77% 3.64% 3.76% 3.77% 3.89% 2Q20 3Q20 4Q20 1Q21 2Q21 66.3% 66.5% 66.2% 66.1% 65.5% 17.8% 17.9% 17.8% 18.0% 18.4% 12.9% 12.6% 12.9% 12.9% 13.1% 3.0% 3.0
Slide 9: Credit Quality
9 $119.7 $116.8 $110.9 $110.9 $104.2 2.04% 1.97% 1.90% 1.93% 1.86% 2Q20 3Q20 4Q20 1Q21 2Q21 0.13% 1.41% 0.40% —% 0.12% 2Q20 3Q20 4Q20 1Q21 2Q21 • Credit quality remains sound and reserve coverage is strong; released $5.0 million from the allowance for loan losses in 2Q21 • The quarter-over-quarter i
Slide 10: Deposit Highlights
10 $6,024 $5,878 $5,732 $5,678 $5,674 $2,634 $2,686 $2,679 $2,759 $2,835 $1,846 $1,767 $1,547 $1,388 $1,243 $588 $508 $634 $553 $531 $956 $917 $872 $978 $1,066 0.95% 0.82% 0.69% 0.60% 0.52% 2Q20 3Q20 4Q20 1Q21 2Q21 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 $3,031 $2,635 $2,529 $2,534 2018 2019 202
Slide 11: Net Interest Income and NIM
11 $46.3 $45.4 $48.7 $47.6 $50.0 2.44% 2.39% 2.61% 2.66% 2.81% Net Interest Income NIM 2Q20 3Q20 4Q20 1Q21 2Q21 0 10 20 30 40 50 60 NII increased in 2Q21 primarily due to: • Higher average loan yields • Lower overall cost of customer deposits • Reduced customer and brokered CD volumes • Lower cost a
Slide 12: Noninterest Income
12 $19.8 $20.3 $11.5 $14.2 $15.7 $3.4 $3.9 $4.2 $4.1 $4.3 $4.3 $4.3 $4.2 $4.6 $4.4 $7.7 $8.6 $1.0 $2.6 $1.3 $4.4 $3.5 $2.1 $2.9 $5.7 2Q20 3Q20 4Q20 1Q21 2Q21 0 2 4 6 8 10 12 14 16 18 20 22 7% 93% 10% 90% Noninterest Income Mix Noninterest Income Mix Commentary • Other noninterest income in 2Q21 incl
Slide 13: Noninterest Expense
13 Increase in noninterest expense in 2Q21 primarily due to: • Higher salaries and employee benefits due to increased severance costs • Higher recruitment fees and addition of 49 new FTEs, primarily for business lines including Amerant Mortgage • Increased advertising expenses (primarily HELOC Campa
Slide 14: Interest Rate Sensitivity
14 $203 $205 $208 $211 $213 -50 bps -25 bps BASE +25 bps +50 bps 160 180 200 (As of June 30, 2021) Fixed 52% Adjustable 48% 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 as
Slide 15: Initiatives Update
15Initiatives Update • “Deposits First” • Brand Awareness • Rationalization of Lines of Business & Geographies • Path to 60% Efficiency Ratio • Capital Structure Optimization • ESG Focused on increasing profitability and shareholder value
Slide 16: Supplemental Loan Portfolio Information
Supplemental Loan Portfolio Information
Slide 17: Deferrals & Forbearance due to COVID-19
17Deferrals & Forbearance due to COVID-19 • 4 customers remaining totaling $54MM or 1.0% of total loans vs. 21.4% at 6/5/20 peak • All in CRE NY: 2 CRE retail $41MM, 1 CRE office with ground floor retail $8MM and 1 multifamily $5MM • Decrease compared to Q1 2021 due to 2 CRE multifamily $7.1MM, forb
Slide 18: Loan portfolio by industry
18Loan portfolio by industry • Diversified portfolio - highest sector concentration, other than real estate, at 10.2% of total loans • 77% of total loans secured by real estate • Main concentrations: • CRE or Commercial Real Estate • Wholesale - Food • Retail - Gas stations • Services – Healthcare,
Slide 19: Industries with escalated monitoring: Travel, Entertainment and Dining
19Industries with escalated monitoring Travel, Entertainment and Dining Very limited exposure: • Arts, Entertainment and Recreation $10 MM (0.2% of total loans) - $8 MM Bowling • Restaurants $42 MM (0.7% of total loans) - 46% Limited- service, 20% Full-service, 35% Other • Aviation $33 MM (0.6% of t
Slide 20: Industries with escalated monitoring: Commercial Real Estate (CRE)
20Industries 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 $ 603 $ 192 $ 282 $ — $ 1,077 39.6 % 19.3 % $ 1,069 $ 8 Multifamily 277 294 295 — 866 31.9 % 15.5 % 658 208 Office 295 16 58 —
Slide 21: Industries with escalated monitoring: CRE Hotels
21Industries with escalated monitoring CRE Hotels (As of 06/30/2021) • CRE Hotel portfolio is limited to 26 properties, majority of which are in popular travel destinations such as Miami Beach (#9 / $106 MM) and New York (#2 / $76 MM) • Three hotel construction loans to borrowers who are experienced
Slide 22: Industries with escalated monitoring: CRE Retail
22 11% 25% 40% 18% 6% 50% or less 50- 60% 60- 70% 70- 80% 80% or more 0% 10% 20% 30% 40% 50% 60% Industries with escalated monitoring CRE Retail (As of 06/30/2021) • Florida and Texas are focused on neighborhood shopping centers or service centers with basic needs related anchor stores, as well as t
Slide 23: Appendices
Appendices
Slide 24: Non-GAAP Financial Measures Reconciliations
24Appendix 1 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented relate
Slide 25: Non-GAAP Financial Measures Reconciliations (cont'd)
25Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Six Months Ended June 30, ($ in thousands) June 30, 2021 March 31, 2021 June 30, 2020 2021 2020 Net income (loss) attributable to Amerant Bancorp Inc. $ 15,962 $ 14,459 $ (15,279) $ 30,421 $ (11,897) Plus restructu
Slide 26: Non-GAAP Financial Measures Reconciliations (cont'd)
26Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Six Months Ended June 30, ($ in thousands, except per share amounts and percentages) June 30, 2021 March 31, 2021 June 30, 2020 2021 2020 Net income (loss) / Average stockholders' equity (ROE) 8.11 % 7.47 % (7.21)
Slide 27: Non-GAAP Financial Measures Reconciliations (cont'd)
27Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) (1) 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 Am
Slide 28: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com