Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q1 2023 Earnings Presentation
31 slides from Amerant Bancorp's earnings presentation, Apr 21, 2023
Slide 1: First Quarter 2023 Earnings Call
First Quarter 2023 Earnings Call April 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 1Q23
Performance Highlights 1Q23 3 (1) • Net income attributable to the Company was $20.2 million in 1Q23 compared to $22.0 million in 4Q22 (2) • Core pre-provision net revenue (Core PPNR) was $37.1 million in 1Q23 compared to $37.8 million in 4Q22 (1) Earnings • Diluted earnings per share (EPS) was $0.6
Slide 4: Core PPNR - 1Q23
Core PPNR - 1Q23 (2) 4 (in thousands) n 1Q23 4Q22 (1) Net income attributable to Amerant Bancorp Inc. $ 20,186 $ 21,973 (1) Plus: provision for credit losses 11,700 16,857 (1) Plus: provision for income tax expense 5,301 5,627 (2) Pre-provision net revenue (PPNR) $ 37,187 $ 44,457 Plus: non-routine
Slide 5: Key Actions of Note in 1Q23
Key Actions of Note in 1Q23 5 • Continued to add key business development personnel in both Amerant Mortgage and Amerant Bank • Hired two senior executives for open positions: – New Head of Commercial Banking – New Houston market president • Amerant Mortgage grew its national footprint with the addi
Slide 6: Key Performance Metrics
Key Performance Metrics 6 ACL / Total NIB Deposits/ Net Interest Efficiency (1) (2) Tier 1 Capital ROA ROE Loans held for Total Deposits Margin Ratio Ratio (3) investment 1.22% 1.20% 3.96% 3.90% 10.89% 10.88% 19.4% 18.7% 0.97% 0.88% 58.42% 63.67% 12.10% 11.15% 4Q22 1Q23 4Q22 1Q23 4Q22 1Q23 4Q22 1Q23
Slide 7: Amerant Mortgage ("AMTM")
Amerant Mortgage ("AMTM") 7 1Q23 4Q22 (1) (2) (3)(6) (1) (2) (3)(6) AMTB AMTM, net Consolidated AMTB AMTM, net Consolidated (in thousands, except for FTEs) FTEs 628 94 722 624 68 692 (4) Total revenue 98,864 2,812 101,676 105,353 1,190 106,543 Expenses Personnel 32,322 2,554 34,876 30,909 1,877 32,7
Slide 8: Investment Portfolio
Investment Portfolio 8 (1) Balances and Yields Highlights ($ in millions) • Effective duration increased to 4.9 years compared to 4.0 years in 2,000 1Q22 due to lower prepayment speeds • Valuation of AFS debt securities improved $6.1 million after-tax in 1,500 $13.4 $11.4 $— 1Q23 compared to $3.9 mi
Slide 9: Loan Portfolio Highlights
Loan Portfolio Highlights 9 (1)(2) (1) Loan Composition Geographic Mix (Domestic) 8.5% 9.6% 8.9% 8.7% 7.7% 12.7% 17.4% 1.9% 2.5% 3.8% 4.0% 3.8% 13.3% 15.8% 16.7% 2.9% 2.9% 2.5% 2.3% 2.1% 6.5% 6.1% 5.3% 4.8% 4.4% 16.2% 16.3% 15.3% 15.1% 15.0% 19.3% 19.3% 20.6% 20.8% 20.0% 6.38% 19.3% 19.4% 18.7% 5.85
Slide 10: Credit Quality
Credit Quality 10 (1) (1) (2) NPLs and NPAs / Total Assets Allowance for Credit Losses ($ in millions) $83.5 $84.4 0.60% $75.5 $76.5 0.73% $70.5 0.41% 0.31% 0.21% 0.23% 1.34% 1.23% 0.39% 0.41% 0.51% 1.19% 1.22% 1.20% 0.29% 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 NPLs / Total Assets NPAs /
Slide 11: Commercial Real Estate (CRE) - Detail
Commercial Real Estate (CRE) -Detail 11 Outstanding as of March 31, 2023 ($ in millions, except %) % Total % Total Income (1) Land and CRE Type FL TX NY Other Total CRE Loans Producing Construction Retail $ 468 $ 155 $ 83 $ 1 $ 707 25.9 % 10.0 % $ 694 $ 11 Multifamily 346 517 123 — $ 986 36.0 % 14.0
Slide 12: Well Diversified and Stable Deposit Mix
Well Diversified and Stable Deposit Mix 12 Deposit Composition Mix by Country of Domicile ($ in millions, except for percentages) $7,287 $7,044 International Deposits 7,000 $6,588 33% of Total Deposits ($ in millions) $1,368 $1,361 57,837 Customers $6,203 $1,319 6,000 $5,692 $1,299 1.91% $1,318 $738
Slide 13: Deposit Concentration
Deposit Concentration 13 As of March 31, 2023 ($ in millions, except for number of customers and percentages) (1) Number of Total Insured & Dollars $ Insured ($) % Uninsured ($) % Customers Uninsured ($) (2) <=250 $ 3,971 54 % $ — — % 97,398 $ 3,971 250-1,000 $ 877 12 % $ 62 1 % 7,113 $ 1,499 1,000-
Slide 14: Liquidity Risk Management
Liquidity Risk Management 14 Our standard liquidity management practices include: • Regular testing of lines of credit • Daily monitoring of Federal Reserve Bank account balances as well as large fund providers • Daily analysis of lending pipeline and deposit gathering opportunities and their impact
Slide 15: Well Capitalized Position
Well Capitalized Position 15 As of March 31, 2023 Regulatory Minimums Total Capital Ratio 12.36% Total Capital Ratio 10.00% CET1 Ratio 10.10% (1)(3) Common Equity Tier 1 Capital TCE Ratio Ratio (CET1) 7.44% 6.50% (2)(3) TCE adj. for HTM Valuation 7.29% (3) TBV/Share adj. for HTM Valuation $20.38 Hol
Slide 16: Net Interest Income and NIM
16 Net Interest Income and NIM Net Interest Income (NII) and NIM (%) Commentary ($ in millions, except for percentages) $82.2 $82.3 NII was slightly up in 1Q23 driven by: 80 $69.9 70 3.96% 3.90% • Asset sensitive position which allowed to offset, 60 $55.6 $58.9 via repricing, the incremental cost of
Slide 17: Interest Rate Sensitivity
Interest Rate Sensitivity 17 (1) (1) Impact on NII from Interest Rate Change Impact on AFS from Interest Rate Change As of March 31, 2023 Expected AOCI Accretion 9.3% 400 6.0% 8.5% (80) 3.1% 4.4% 0% 2.2% 0% -2.2% -4.3% ($ in Millions) -1.8% ($ in Millions) -3.7% -8.3% 350 (88) -9.3% 390 (90) 368 378
Slide 18: Noninterest Income Mix
Noninterest Income Mix 18 Noninterest Income Mix Commentary ($ in millions) • Noninterest income down by $5.3 million in 1Q23, partially offset by $19.3 higher net gains on early extinguishment of FHLB advances and 30 $62.4 $24.4 mortgage banking income. • The decrease in noninterest income was driv
Slide 19: Noninterest Expense
Noninterest Expense 19 Noninterest Expense Mix Commentary ($ in millions, except for FTEs) • Noninterest expense increased in 1Q23 primarily due to: – higher salaries in connection with annual performance $62.2 $62.2 $64.7 adjustments and new hires in Amerant Mortgage $60.8 $56.1 – higher consulting
Slide 20: Closing Remarks
Closing Remarks
Slide 21: Supplemental Loan Portfolio Information
Supplemental Loan Portfolio Information
Slide 22: Loans Held for Investment Portfolio by Industry
Loans Held for Investment Portfolio by Industry 22 As of March 31, 2023 Real Non-Real % Total Unfunded Highlights ($ in millions) Estate Estate Total Loans Commitments(8) Financial Sector (1) $ 6 $ 182 $ 188 2.7 % $ 34 • Diversified portfolio - highest Construction and Real Estate & Leasing: sector
Slide 23: CRE Retail - Detail
CRE Retail -Detail 23 As of 03/31/2023 (1) (1) CRE Retail CRE Retail - Single Tenant Retail - LTV 60% Theme/ Neighborhood 50% Festival Tobacco & CBD; 36.0% Center; 13% Center; 41% 40% 33% 31% 30% Food and Health Retail; 26.0% 19% 20% 16% Single 10% Community Tenant; 7% 1% Center; 22% Clothing; 38.0%
Slide 24: CRE Office - Detail
CRE Office -Detail 24 As of 03/31/2023 (1) CRE Office Office - LTV 60% New York; 13.0% Texas; 14.0% 50% 44% 40% 38% 30% 20% 9% 9% South Florida; 10% 73.0% —% 0% 50% or 50-60% 60-70% 70-80% 80% or less more Total: $344 million Loan Portfolio Percentage: 4.9% (1) CRE office loans above $5 million High
Slide 25: Non-GAAP Financial Measures Reconciliations
Appendix 1 25 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented relat
Slide 26: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 26 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, ($ in thousands) March 31, 2023 December 31, 2022 Total noninterest expenses $ 64,733 $ 62,241 Less: non-routine noninterest expense items Restructuring costs (2): Staff reduction costs (3) 213 1,221 Consulting an
Slide 27: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 27 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, (in thousands, except percentages and per share amounts) March 31, 2023 December 31, 2022 Net income attributable to Amerant Bancorp Inc. (1) $ 20,186 $ 21,973 Plus after-tax non-routine items in noninterest expen
Slide 28: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 28 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, (in thousands, except percentages, share data and per share amounts) March 31, 2023 December 31, 2022 Net income / Average stockholders' equity (ROE) (1) 11.15 % 12.10 % Plus: after tax impact of non-routine items
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, share data and per share amounts) March 31, 2023 December 31, 2022 Tangible common stockholders' equity $ 704,764 $ 682,565 Less: Tangible common stockholders' equity, adjusted f
Slide 30: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 30 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 on the CECL adoption and related effects to quarterly results for each quarter in th
Slide 31: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com