Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q2 2019 Earnings Presentation
21 slides from Amerant Bancorp's earnings presentation, Jul 26, 2019
Slide 1: Second Quarter 2019 Financial Review Earnings Call
Second Quarter 2019 Financial Review Earnings Call July 26, 2019
Slide 2: Important Notices and Disclaimers
2 Important Notices and Disclaimers 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, without limitation, future financial and operating results; costs and revenues;
Slide 3: Performance Highlights 2Q19
3 Performance Highlights 2Q19 Ÿ Net Income increased 23.4% over 2Q18, or 6.1% as adjusted (1) Ÿ Net Interest Margin (NIM) improved 15bps compared to 2Q18. Net Interest Income (NII) vs. 2Q18 slightly lower as higher interest income was offset by higher deposit costs and a smaller balance sheet Earnin
Slide 4: Second Quarter 2019 Results
Second Quarter 2019 Results 4 ($ in millions, except per share items) 2Q18 1Q19 2Q19 Return on Equity(5) (ROE) Adjusted ROE(1)(5) Net Interest Income 54.0 55.4 53.8 Net Interest Margin (NIM) 2.77% 2.96% 2.92% 7.56% 7.66% 6.87% 6.56% 7.25% Provision for Loan Losses (Reversal of) 0.2 — (1.4) 5.57% Non
Slide 5: Loan Portfolio Highlights
5 Loan Portfolio Highlights Loan Composition Geographic Mix (Domestic) 6,000 7,000 2.0% 1.9% 1.9% 1.9% 1.8% 0.5% 0.4% 5.9% 5.0% 1.2% 9.0% 9.3% 9.2% 806 762 738 775 812 6,000 8.3% 8.3% 5,000 13.1% 14.0% 14.4% 10.5% 11.5% 954 968 1,000 943 1,010 5,000 4,000 23.3% 21.6% 20.3% 4,000 23.0% 23.9% (Million
Slide 6: Credit Quality
Credit Quality 6 Non-Performing Assets (1) / Total Assets Allowance for Loan Losses ($ in millions) 0.41% 0.41% $69.9 $69.5 0.35% $61.8 0.26% $60.3 0.22% 1.12% 1.13% $57.4 1.04% 1.05% 0.99% 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Allowance for Loan Losses ALL as a % of Total Loans Allowanc
Slide 7: Interest-Earning Assets
7 Interest-Earning Assets 9,000 8,000 7,000 $1,812 $1,792 $1,741 $1,701 $1,651 6,000 $6,220 $6,159 $5,920 $5,744 $5,813 5,000 4.74% 4.74% 4.75% (Millions) 4,000 4.51% 4.31% 3,000 2,000 2.98% 2.82% 2.75% 2.87% 2.85% 1,000 0 2Q18 3Q18 4Q18 1Q19 2Q19 Loans Investments Loan Yield Investment Yield • Loan
Slide 8: Deposit Highlights
8 Deposit Highlights Deposit Composition Mix by Country of Domicile 7,000 International Deposits $6,363 ($ in millions) $6,189 $6,033 $5,888 ~13% Compound Annual Decline 6,000 $738 $5,819 $643 $642 $589 $619 $1,714 $1,736 $1,745 5,000 $1,770 $1,721 CDs $4,490 $4,093 $3,500 $3,031 $2,805 48% 4,000 1.
Slide 9: Net Interest Income and NIM
9 Net Interest Income and NIM Net Interest Income (NII) and NIM (%) Commentary • NIM was 2.92% up from 2.77% in 2Q18 60 $56.8 $55.6 $55.4 • NII slightly lower versus 1Q19 mostly due to a $54.0 $53.8 decline in the average balances of commercial loans and investment securities and higher deposit cost
Slide 10: Noninterest Income
10 Noninterest Income Noninterest Income Mix Commentary • Other noninterest income changes in first half of 2019 due to: 16 $15.0 – $1.0 million gain on municipal securities sold in 2Q19 $14.1 14 – $0.6 million gain on the early termination of FHLB $13.0 $13.2 advances in 1Q19 $12.0 12 – $0.6 millio
Slide 11: Noninterest Expense
11 Noninterest Expense Noninterest Expense Mix Commentary • 2Q19 Other operating expenses includes $1.8 million of ($ in millions, except for FTEs) rebranding. We expect to incur in approximately $1.8 million for additional rebranding expenses through the end of 2019 and 60 have spent approximately
Slide 12: Adjusted Noninterest Expense
12 Adjusted Noninterest Expense (1) Adjusted Noninterest Expense Mix Commentary ($ in millions, except for FTEs) • Salaries and employee benefits slightly down despite 60 significant reduction in FTEs due to timing of terminations being later in the quarter and $51.0 $49.4 $50.2 amortization of Dec.
Slide 13: Interest Rate Sensitivity
13 Interest Rate Sensitivity Commentary Loan Portfolio & Repricing Detail • The Company continues to be asset sensitive driven by floating rate (As of June 30, 2019) loans and loans maturing in less than a year Loan Portfolio By Rate Type Loan Portfolio By Interest Type • Given more recent market in
Slide 14: FY19 Goals
14 FY19 Goals • Conclude remix of loan portfolio by replacing low yielding • Increase share of wallet among our Net Interest international loans and non- domestic commercial client base relationship SNCs with higher Deposits Income • Increase domestic deposits and margin domestic relationship retain
Slide 15: Appendices
Appendices
Slide 16: Appendix Non-GAAP Financial Measures Reconciliations
Appendix 1 16 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related primarily to non
Slide 17: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 17 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, June 30, March 31, June 30, ($ in thousands, except per share amounts and percentages) 2019 2019 2018 Net income $ 12,857 $ 13,071 $ 10,423 Plus after-tax restructuring costs: Restructuring costs before income tax
Slide 18: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 18 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, June 30, March 31, June 30, ($ in thousands, except per share amounts and percentages) 2019 2019 2018 Diluted earnings per share (4) $ 0.30 $ 0.30 $ 0.25 Plus: after tax impact of restructuring costs 0.05 0.02 — P
Slide 19: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 19 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, June 30, March 31, June 30, ($ in thousands, except per share amounts and percentages) 2019 2019 2018 Efficiency ratio 77.87 % 75.73 % 76.31 % Less: impact of restructuring costs (4.03)% (1.36)% —% Less: impact of
Slide 20: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 20 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
Slide 21: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com