Slide 1: Second Quarter 2023 Earnings Call
Second Quarter 2023 Earnings Call July 21, 2023
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers 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 o
Slide 3: Performance Highlights 2Q23
Performance Highlights 2Q23 3 • Net income attributable to the Company was $7.3 million in 2Q23 compared to $20.2 million in 1Q23 (1) • Core pre-provision net revenue (Core PPNR) was $39.2 million in 2Q23 compared to $37.1 million in 1Q23 Earnings • Diluted earnings per share (EPS) was $0.22 in 2Q23
Slide 4: Core PPNR - 2Q23
Core PPNR - 2Q23 (1) 4 2Q23 1Q23 (in thousands) Net income attributable to Amerant Bancorp Inc. $ 7,308 $ 20,186 Plus: provision for credit losses 29,077 11,700 Plus: provision for income tax expense 1,873 5,301 (1) Pre-provision net revenue (PPNR) $ 38,258 $ 37,187 Plus: non-routine noninterest exp
Slide 5: Key Actions of Note
Key Actions of Note 5 Loans: • Growth YTD of $297 million, or 4.30%, and QoQ of $102 million or 1.43% for the quarter ended June 30, 2023 • Increase primarily in commercial loans, partially offset by continued reduction in indirect consumer loans outstanding given termination of program last year De
Slide 6: Deposits Details
Deposits Details 6 ($ in millions, except %) Change QoQ Change YTD 4Q22 1Q23 2Q23 $ % $ % Commercial Real Estate 211 263 255 (8) (3) 44 21 Commercial & Industrial 819 918 1,028 110 12 209 26 Specialty Finance 123 123 176 53 43 53 43 Florida Government and Municipalities 283 279 275 (4) (1) (8) (3) R
Slide 7: Well Diversified and Stable Deposit Mix
Well Diversified and Stable Deposit Mix 7 Deposit Composition Mix by Country of Domicile ($ in millions, except for percentages) International Deposits 8,000 $7,580 33% of Total Deposits ($ in millions) $7,287 57,665 Accounts $7,044 $1,294 7,000 $6,588 $1,361 $1,368 $6,203 $1,319 6,000 $1,299 $686 $
Slide 8: Deposits: Insured vs. Uninsured
Deposits: Insured vs. Uninsured 8 As of June 30, 2023 ($ in millions, except for number of customers and percentages) (1) Number of Total Insured & Dollars $ Insured ($) % Uninsured ($) % Customers Uninsured ($) (in thousands) (2) <=250 $ 4,243 56 % $ — — % 98,752 $ 4,243 250-1,000 $ 959 13 % $ 662
Slide 9: Liquidity Risk Management
Liquidity Risk Management 9 Our standard liquidity management practices include: • Regular testing of lines of credit; satisfactory results have been obtained as of June 30, 2023 • Daily monitoring of Federal Reserve Bank account balances as well as large fund providers • Daily analysis of lending p
Slide 10: Shares Outstanding
Shares Outstanding 10 Changes in shares outstanding: Class A balance at March 31, 2023 33,814,260 (1) Class A repurchase program (95,262) (2) Net Issuances 17,161 Balance at June 30, 2023 33,736,159 (1) Shares were bought back under the "2023 Class A Common Stock Repurchase Program" approved on Dece
Slide 11: Well Capitalized Position
Well Capitalized Position 11 As of June 30, 2023 Total Capital Ratio 12.41% Regulatory Minimum: 10.00% Common Equity Tier 1 Capital (CET1) Ratio 10.02% Regulatory Minimum: 6.50% (1)(3) TCE Ratio 7.34% (2)(3) TCE adj. for HTM Valuation 7.16% (3) TBV/Share adj. for HTM Valuation $20.11 (1) Includes $8
Slide 12: Key Performance Metrics
Key Performance Metrics 12 ACL / Total NIB Deposits/ Net Interest Efficiency (1) (2) Tier 1 Capital ROA ROE Loans held for Total Deposits Margin Ratio Ratio (3) investment 0.88% 1.48% 3.90% 3.83% 10.88% 10.79% 1.20% 18.7% 63.67% 65.61% 11.15% 17.1% 0.31% 3.92% 1Q23 2Q23 1Q23 2Q23 1Q23 2Q23 1Q23 2Q23
Slide 13: Investment Portfolio
Investment Portfolio 13 (1) Balances and Yields Highlights ($ in millions) • Effective duration increased to 5.1 years as the model anticipates 1,500 $10.8 longer duration due to recent higher mortgage rates and therefore $2.5 slower prepayments $238.6 $239.3 $234.4 • Valuation of AFS debt securitie
Slide 14: Loan Portfolio Highlights
Loan Portfolio Highlights 14 (1)(2) (1) Loan Composition Geographic Mix (Domestic) 9.6% 8.9% 8.7% 7.7% 7.0% 18.5% 2.5% 13.3% 17.4% 3.8% 4.0% 3.8% 3.9% 15.8% 16.7% 2.9% 2.5% 2.3% 2.1% 2.1% 6.1% 5.3% 4.8% 4.4% 4.1% 16.3% 15.3% 15.1% 15.0% 14.7% 19.3% 20.6% 20.8% 20.0% 19.6% 6.79% 6.38% 5.85% 19.4% 18.
Slide 15: Credit Quality
Credit Quality 15 (2) (1) (1) Allowance for Credit Losses NPLs and NPAs / Total Assets ($ in millions) $106.0 $83.5 $84.4 $76.5 0.50% $70.5 0.41% 0.31% 0.51% 0.71% 1.48% 0.21% 0.23% 0.39% 0.41% 1.23% 1.19% 1.22% 1.20% 0.29% 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 NPLs / Total Assets NPAs /
Slide 16: Commercial Real Estate (CRE) Held For Investment-Detail
Commercial Real Estate (CRE) Held For 16 Investment-Detail Outstanding as of June 30, 2023 ($ in millions, except %) % Total % Total Income (1) Land and CRE Type FL TX NY Other Total CRE Loans Producing Construction Retail $ 461 $ 163 $ 83 $ 2 $ 709 26.0 % 9.9 % $ 701 $ 8 Multifamily 341 490 107 — $
Slide 17: Net Interest Income and NIM
17 Net Interest Income and NIM Net Interest Income (NII) and NIM (%) Commentary ($ in millions, except for percentages) $82.2 $82.3 $83.9 NII was up in 2Q23 driven by: 80 $69.9 • higher rates on total interest earnings assets, mainly loans 70 and interest earning deposits with banks. These results $
Slide 18: Interest Rate Sensitivity
Interest Rate Sensitivity 18 (1) (1) Impact on NII from Interest Rate Change Impact on AFS from Interest Rate Change As of June 30, 2023 Expected AOCI Accretion 9.8% 400 6.4% 9.6% (100) 4.2% 4.6% ($ in Millions) 0% 2.3% ($ in Millions) -1.6% 0% 350 -3.5% -7.3% 1,119 1,073 1,050 371 382 1,026 1,003 9
Slide 19: Noninterest Income Mix
Noninterest Income Mix 19 Noninterest Income Mix Commentary ($ in millions) 30 $24.4 $19.3 $26.6 • Noninterest income was up by $7.3 million in 2Q23, $62.4 primarily due to lower losses on the sale of AFS securities $11.4 $13.2 $13.4 20 (3) $12.9 $16.0 • Core noninterest income , which excludes $12.
Slide 20: Noninterest Expense
Noninterest Expense 20 Noninterest Expense Mix Commentary ($ in millions, except for FTEs) • Noninterest expense increased in 2Q23 primarily due to: – $2.6 million loss on sale of repossessed assets in connection with our $72.5 equipment-financing activities $62.2 $62.2 $64.7 – $2.0 million impairme
Slide 21: Amerant Mortgage ("AMTM")
Amerant Mortgage ("AMTM") 21 2Q23 1Q23 (1) (2) (3)(6) (1) (2) (3)(6) AMTB AMTM, net Consolidated AMTB AMTM, net Consolidated (in thousands, except for FTEs) FTEs 617 93 710 628 94 722 (4) Total revenue $ 107,500 $ 2,996 $ 110,496 $ 98,864 $ 2,812 $ 101,676 Expenses (5) Personnel 30,974 3,273 34,247
Slide 22: Closing Remarks
Closing Remarks
Slide 23: Supplemental Loan Portfolio Information
Supplemental Loan Portfolio Information
Slide 24: Loans Held for Investment Portfolio by Industry
Loans Held for Investment Portfolio by Industry 24 As of June 30, 2023 Real Non-Real % Total Unfunded Highlights ($ in millions) Estate Estate Total Loans Commitments(8) Financial Sector (1) $ 6 $ 200 $ 206 2.9 % $ 30 • Diversified portfolio - highest Construction and Real Estate & Leasing: sector c
Slide 25: CRE Retail - Detail
CRE Retail -Detail 25 As of 06/30/2023 (1) (1) CRE Retail CRE Retail - Single Tenant Retail - LTV 60% Theme/ 50% Festival Neighborhood Tobacco & CBD; 31% Center; 13% Center; 43% Food and Health Retail; 23% 40% 35% 30% 30% 16% 18% 20% 10% Single Car Wash; 12% 1% Community Tenant; 8% Clothing; 34% Cen
Slide 26: CRE Office - Detail
CRE Office -Detail 26 As of 06/30/2023 (1) CRE Office Office - LTV 60% New York; 12% Texas; 13% 50% 42% 40% 37% 30% 20% 12% South Florida; 75% 9% 10% —% 0% 50% or 50-60% 60-70% 70-80% 80% or less more Total: $356 million Loan Portfolio Percentage: 5.0% (1) CRE office loans above $5 million Highlight
Slide 27: Non-GAAP Financial Measures Reconciliations
Appendix 1 27 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented relat
Slide 28: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 28 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, ($ in thousands) June 30, 2023 March 31, 2023 December 31, 2022 Total noninterest expenses $ 72,500 $ 64,733 $ 62,241 Less: non-routine noninterest expense items Restructuring costs (2): Staff reduction costs (3)
Slide 29: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 29 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, (in thousands, except percentages and per share amounts) June 30, 2023 March 31, 2023 December 31, 2022 Net income attributable to Amerant Bancorp Inc. (1) $ 7,308 $ 20,186 $ 21,973 Plus after-tax non-routine item
Slide 30: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 30 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, (in thousands, except percentages, share data and per share amounts) June 30, 2023 March 31, 2023 December 31, 2022 Net income / Average stockholders' equity (ROE) (1) 3.92 % 11.15 % 12.10 % Plus: after tax impact
Slide 31: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 31 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, (in thousands, except percentages, share data and per share amounts) June 30, 2023 March 31, 2023 December 31, 2022 Tangible common stockholders' equity $ 696,832 $ 704,764 $ 682,565 Less: Net unrealized accumulat
Slide 32: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 32 Non-GAAP Financial Measures Reconciliations (cont’d) (1) As previously disclosed, the Company adopted CECL in the fourth quarter of 2022, effective as of January 1, 2022. See Form 10-K for more details of the CECL adoption and related effects to quarterly results for each quarter in th
Slide 33: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com