Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Mercantil Bank Holding — IPO Roadshow (November 2018)
29 slides from Amerant Bancorp's IPO roadshow presentation, Nov 26, 2018
Slide 1: Investor Presentation November 2018
Investor Presentation November 2018 Free Writing Prospectus Filed Pursuant to Rule 433 Registration Statement No. 333-227744 Dated November 26, 2018
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers The Company has filed a registration statement (File No. 333-227744), including a preliminary prospectus, with the Securities and Exchange Commission (“SEC”) for the offering discussed in this presentation. This registration statement has not yet been declared effec
Slide 3: Offering Overview
Offering Overview $16.50 - $18.50 per share 15% of all shares offered To repurchase up to all of our Class B common stock retained by MSF (3.5 million shares) To redeem, in whole or in part, three series of our highest cost outstanding trust preferred securities with an aggregate balance of $53.9 mi
Slide 4: Investment Highlights
Investment Highlights Established Franchise in Attractive Markets Strong and Diverse Deposit Base Well-Positioned Loan Portfolio Pathway to Strong Profitability Significant Fee Income Platform Long history with strong reputation and deep client relationships Presence in high-growth markets of Florid
Slide 5: Who We Are
3rd largest full-service bank headquartered in Florida(2) 1st in Miami MSA for community banks(3) Who We Are Market Share 23 branches throughout South Florida and Houston, with loan production office in NYC $6.2 billion $8.4 billion Coral Gables, FL 948 FTEs $1.7 billion under management/custody Fou
Slide 6: Experienced Management Team
Experienced Management Team • Executive Vice President and Chief Business Officer since February 2018 • All 26 years of banking experience spent with MSF/AMTB • Domestic Personal and Commercial Manager from 2012 to 2018 • Special Assets Manager from 2009 to 2012 Executive Vice President & Chief Busi
Slide 7: Deep Culture of Enterprise Risk Management
Deep Culture of Enterprise Risk Management Own and manage their risks Identify, measure, monitor, report, analyze and mitigate risks Internal controls Strong culture of compliance with BSA/AML and all regulatory standards Comprehensive daily OFAC screening of all clients and counterparties Front Lin
Slide 8: Meant for You: A Different Kind of Bank
Meant for You: A Different Kind of Bank All that we do, our attitude and behaviors, aim at our ultimate goal: offering the closest, most personal and exceptional service to our customers. We have developed strong relationships for the past 39 years and we are excited to create new ones, always adapt
Slide 9: Attractive Franchise
Attractive Franchise Our markets are diverse and growing, both in terms of demographics and industry Our footprint spans some of the most attractive markets in the US Miami-Dade MSA Sources: S&P Global Market Intelligence. US Bureau of Labor Statistics. Greater Houston Partnership (www.Houston.org).
Slide 10: Growing and Diverse Markets
Growing and Diverse Markets Market Share Branch Footprint Florida Texas Market Demographics 2010 – 2019 Population Change 2019 – 2024 Median HHI Change 2019 – 2024 Population Change 15 banking centers $5,762mm Deposits 8 banking centers $638mm Deposits Our Sugar Land, TX branch also serves Fort Bend
Slide 11: Ongoing Business Transformation
Ongoing Business Transformation Focused on traditional community banking business in the U.S. and an opportunistic international business Depositor base comprised substantially of individuals and corporations outside of the U.S. Value proposition “in development” and strong reliance of “non-relation
Slide 12: Summary of Our Strategic Plan
Summary of Our Strategic Plan Building on our strengths to shape our future We Are a Local Bank with an International Heritage Protect profitable international customer base Grow U.S. presence and enhance market share in existing and adjacent markets Enhance multi-channel client experience with impr
Slide 13: Build on Improving Financial Performance
Build on Improving Financial Performance Domestic Deposits Nonaccrual Loans / Total Loans Net Interest Margin Efficiency Ratio ROATCE(2) Domestic Deposits as % of Total Deposits: 31.1% 49.1% International Loans as % of Total Loans: 24.2% 9.1% Yield on Loans(1): 3.06% 4.26% # of FTEs: 1007 948 ROAA(2
Slide 14: Highly Attractive Deposit Franchise
Highly Attractive Deposit Franchise Commentary Q3 2018 Deposit Mix (1) Domestic Deposits International Deposits Focus on growing overall deposit base while maintaining pricing discipline AMTB has experienced substantial growth in domestic deposits Transition from international deposits to core domes
Slide 15: Strategic Shift in Loan Mix Yielding Benefits
Strategic Shift in Loan Mix Yielding Benefits Highlights Annualized US loan growth at 10.4% since 2015 Reduced international financial institution loans by $393.9 million, or 26.6% CAGR since 2015 Average loan yields have increased from 3.06% in 2015 to 4.26% for the nine months ended September 30,
Slide 16: Balanced CRE Loan Portfolio
Balanced CRE Loan Portfolio Q3 2018 CRE Portfolio(1) CRE Loan Mix by Primary Market Area(2) Highlights Established board limits set for CRE as percentage of total risk-based capital Predominantly income producing and balanced between sectors Geographically diversified Total loan growth expected to b
Slide 17: Disciplined Credit Culture
Peer Median Amerant Disciplined Credit Culture Net Charge-Offs / Average Loans Robust Underwriting Standards Non-Performing Assets / Assets Reserves / Gross Loans YTD Net Charge-Offs / Average Loans of 0.10%, in-line with peer(1) median of 0.07% Q3 2018 Reserves / Gross Loans of 1.13%, above peer me
Slide 18: Interest Income and Margin Trends
Peer Median Interest Income and Margin Trends Asset Sensitivity(1) Well positioned, asset sensitive balance sheet Increase in NIM through the first nine months of 2018 driven by rising interest rates and changes in loan portfolio composition NIM expected to improve and more closely approach peer lev
Slide 19: Robust Wealth Management Franchise Anchors Non-Interest Income
Robust Wealth Management Franchise Anchors Non-Interest Income Key Considerations Sophisticated wealth management and brokerage platform serving affluent international clientele $1.7bn in assets under management/custody Increased focus on domestic market cross-selling with commercial and middle mark
Slide 20: Increasing Efficiency in Operating Platform
Increasing Efficiency in Operating Platform Reduction and reorganization of existing office space to increase the amount available for lease to third parties Branch of the future model will be smaller Cost Initiatives Simplification of business model and product offerings as part of separation from
Slide 21: Illustrative ROA Expansion
Illustrative ROA Expansion (bps) 1 2 3 4 Operating/Efficiency Improvements Growth Technology and Expense Saving Initiatives Changing Business Mix Margin Expansion Fee Income Growth 1 2 3 4 Technology and Expense Saving Initiatives Changing Business Mix Margin Expansion Fee Income Growth Continue to
Slide 22: Investment Highlights
Investment Highlights Recent shift from preservation of capital to driving and growing shareholder value Substantial and continuing insider ownership, approximately 30% pro forma Strong asset quality and domestic loan growth coupled with an asset sensitive balance sheet Focus on expanding domestic d
Slide 23: Appendices
Appendices
Slide 24: Summary Financial Statements
Appendix 1 Summary Financial Statements (1) (1) The balance of securities includes only held to maturity and available for sale. FHLB and FRB stock are included in "Other Assets".
Slide 25: Summary Financial Statements (cont'd)
Appendix 1 Summary Financial Statements (cont’d) (1) Annualized.
Slide 26: Non-GAAP Reconciliations: One-Time Gains and Losses
(1) The Spin-off caused an unexpected early distribution for U.S. federal income tax purposes from our deferred compensation plan. This compensation is to be paid to plan participants to mitigate the effect of the unexpected early distribution. Appendix 2 Non-GAAP Reconciliations One-Time Gains and
Slide 27: Non-GAAP Reconciliations: Adjusted Non-Interest Income
Appendix 2 Non-GAAP Reconciliations Adjusted Non-Interest Income
Slide 28: Securities Portfolio – Unrealized Losses
(1) Reflects amortized cost. (2) September 30, 2018 includes $50.0 million in “investment grade” quality securities issued by corporate entities from Panama, Europe, and Japan in three different sectors. The Company limits exposure to foreign investments based on cross border exposure by country, ri
Slide 29: Thank you
AMERANT Thank you
Mercantil Bank Holding — IPO Roadshow (November 2018) on 6ix