Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q1 2024 Earnings Presentation
35 slides from Amerant Bancorp's earnings presentation, Apr 25, 2024
Slide 1: First Quarter Earnings
First Quarter Earnings April 25, 2024
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers 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 of
Slide 3: 1Q24 In Review
1Q24 In Review • Total loans decreased by $258.5 million as we completed the sale of $401 million of Houston-based multifamily loan portfolio; organic loan growth was $142.5 million • Organic deposit growth was $331.8 million offsetting the planned reduction in institutional deposits of $262 million
Slide 4: 1Q24 Highlights
1Q24 Highlights Income Statement Balance Sheet Capital • Diluted EPS (1) - $0.31 • Total Assets - $9.8B • Total Capital Ratio - 12.50% • NIM - 3.51% • Total Deposits - $7.9B • CET 1 - 10.11% • Provision for credit losses - $12.4M • Loans Held for Investment , gross - $7.0B • Tier 1 Capital Ratio - 1
Slide 5: Deposit Details
Deposit Details ($ in millions, except %) Change QTD 3Q23 4Q23 1Q24 $ % Relationship Deposits 6,474 6,861 7,228 367 5% Institutional Deposits 337 297 — (297) (100)% Brokered Deposits 736 737 650 (87) (12)% Total Deposits 7,547 7,895 7,878 (17) —% Total Gross Loans (1) 7,143 7,265 7,006 (259) (4)% Lo
Slide 6: Well Diversified and Stable Deposit Mix
Well Diversified and Stable Deposit Mix Deposit Composition Mix by Country of Domicile ($ in millions) $7,895 $7,878 Domestic Deposits 67% of Total Deposits 8,000 $7,580 $7,547 ($ in millions) Approx. avg. acct balance: $110,000 $7,287 $1,427 $1,397 $1,294 $1,370 7,000 $1,361 5,000 6,000 $737 $650 $
Slide 7: Key Performance Metrics
Key Performance Metrics NIB Deposits/Total Net Interest Efficiency ACL / Total Loans held ROA ROE Tier 1 Capital Ratio Deposits Margin Ratio for investment (2) 1.39% 1.38% (1) 5.69% 10.54% 10.88% 3.72% 108.30% 0.44% 18.1% 17.7% 3.51% 72.03% (2) (2) (0.71)% (9.22)% 4Q23 1Q24 4Q23 1Q24 4Q23 1Q24 4Q23
Slide 8: Investment Portfolio
Investment Portfolio Expected Prepayments & Maturities Balances and Yields (1) ($ in millions) 60.0 ($ in millions) 2,000 $2.5 37.6 39.3 39.2 39.7 $2.5 1,500 $— 40.0 $226.6 $224.0 $239.3 1,000 4.40% 4.64% 4.78% 4.83% 20.0 4.17% 4.17% 500 3.82% $1,045.9 $1,217.5 $1,298.1 0 0.0 1Q23 4Q23 1Q24 2Q24 3Q2
Slide 9: Loan Portfolio Highlights
Loan Portfolio Highlights Loan Composition (1) Geographic GeographicMix (1) Mix(Domestic) 7.7% 7.0% 6.1% 5.4% 4.8% 3.8% 3.9% 4.0% 4.5% 3.9% 17.4% 18.5% 19.5% 20.4% 21.6% 2.1% 2.1% 2.0% 1.8% 1.7% 4.4% 4.1% 3.4% 3.0% 3.3% 12.9% 15.0% 14.7% 15.8% 16.2% 17.0% 20.0% 19.6% 18.5% 17.3% 21.3% 22.0% 20.5% 20
Slide 10: Commercial Real Estate (CRE) Held For Investment - Detail
Commercial Real Estate (CRE) Held For Investment - Detail Outstanding as of March 31, 2024 ($ in millions) Land and CRE Type FL TX NY Other Total % Total CRE % Total Loans (1) Income Producing (2) Construction Retail $ 555 $ 138 $ 80 $ — $ 773 32.8 % 11.1 % $ 771 $ 2 Multifamily $ 286 $ 92 $ 88 $ 41
Slide 11: Credit Quality
Credit Quality Allowance for Credit Losses NPLs/ Total Loans and NPAs / Total Assets ($ in millions) 0.65% $106.0 0.71% $98.8 $95.5 $96.1 0.46% 0.47% 0.43% $84.4 0.57% 1.48% 0.31% 0.51% 1.40% 1.39% 1.38% 0.56% 0.51% 1.20% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Allowance for Credit Losses
Slide 12: Allowance for Credit Losses
Allowance for Credit Losses ($ in millions) $96.1 $95.5 $11.7 $2.4 $1.3 $(1.6) $(13.2) 4Q23 Requirement for Gross Charge-offs Loan Growth Requirements for Recoveries 1Q24 Charge-offs Credit Quality, Factor Updates & Macroeconomic Changes 12
Slide 13: Special Mention & Non Performing Loans
Special Mention & Non Performing Loans Special Mention Loans ($ in millions) $60.6 $103.8 $46.0 $(2.8) 4Q23 Downgrades to Special Net Paydowns 1Q24 Mention Increase in special mention consists of four loans: one commercial relationship in Florida totaling $32.4 million in the healthcare industry and
Slide 14: Net Interest Income and NIM
Net Interest Income and NIM 14 NII and NIM (%) ($ in millions) $82.3 $83.9 $81.7 $78.6 $78.0 80 70 60 50 3.90% 3.83% 40 3.72% 3.57% 3.51% 30 20 10 0 1Q23 2Q23 3Q23 4Q23 1Q24 Net Interest Income NIM Total Deposits Beta Evolution Cost of Funds 1.96 2.00 1.00 1Q23 2Q23 3Q23 4Q23 1Q24 Cost of Deposits (
Slide 15: Net Interest Margin
Net Interest Margin Margin Bridge 3.72% 3.51% 0.07% 0.05% (0.04)% (0.10)% (0.03)% (0.16)% 4Q23 Loans Loan Recovery Securities Other Earning Funding Mix Cost of Funds 1Q24 Asset Mix 15
Slide 16: Interest Rate Sensitivity
Interest Rate Sensitivity 16 Impact on NII from Interest Rate Change (1) Impact on AFS from Interest Rate Change (1) As of March 31, 2024 Expected AOCL Improvement 5.1% 1,432 1,353 1,354 375 3.8% 1,296 1,266 1,233 3.6% 10.5% 1,189 ($ in Millions) ($ in Millions) 0% 4.4% 350 (0.9)% 4.5% (50) (2.1)% 0
Slide 17: Non-Interest Income Mix
Non-Interest Income Mix Non-Interest Income Mix Assets Under Management and Custody ($ in millions) $19.3 30 $26.6 1Q23 1Q24 $21.9 $13.2 $19.5 $13.4 20 $7.0 $6.5 $14.5 19% 17% $2.1 $0.2 $0.5 $1.2 $0.5 $0.8 $4.5 $4.5 $4.4 $5.6 10 $2.1B $3.8 $2.4B $4.2 $4.3 $4.4 $4.2 $4.3 $5.0 $4.9 $5.1 $4.4 $4.3 0 $(
Slide 18: Non-Interest Expense
Non-Interest Expense Non-Interest Expense Mix Non-routine Noninterest Expenses ($ in millions, except for FTEs) ($ in millions) 50 120 $109.7 $43.1 40 90 $72.5 30 $64.7 $64.4 $76.7 $66.6 $35.5 60 $38.3 20 $29.8 $33.1 $33.6 $13.4 30 $34.9 $34.2 $31.3 $33.0 $33.0 10 $6.3 722 $2.0 710 $3.4 700 682 696
Slide 19: EPS Trend
EPS Trend Change in Diluted Earnings (Loss) Per Common Share 1.5 $1.10 1 0.5 $0.31 0 $(0.11) $(0.51) $(0.17) -0.5 -1 4Q23 Core PPNR Net Nonroutine Items in Income Tax Expense 1Q24 4Q23 19
Slide 20: Closing Remarks
Closing Remarks • As previously announced on April 17th: – We have entered into a letter of intent for a highly visible and accessible space for our new Palm Beach regional office and banking center – We have an executive search underway for a Central Florida Market President – We intend to open 3 o
Slide 21: Supplemental Loan Portfolio Information
Supplemental Loan Portfolio Information
Slide 22: Loans Held for Investment Portfolio by Industry
Loans Held for Investment Portfolio by Industry (March 31, 2024) Non-Real Highlights ($ in millions) Real Estate Estate Total % Total Loans Financial Sector (1) $ 9 $ 327 $ 336 4.8 % • Diversified portfolio - highest Construction and Real Estate & Leasing: sector concentration, other than Commercial
Slide 23: CRE Retail - Detail
CRE Retail - Detail As of 03/31/2024 CRE Retail (1) CRE Retail - Single Tenant (1) Retail - LTV Food and Health Retail; 25.0% 60% Theme/Festival Center; 12% Neighborhood Center; 41% 50% 40% 40% 29% Tobacco & CBD; 36.0% 30% Community Center; 15% 20% 16% 15% Single Tenant; 6% 10% —% Clothing; 39.0% 0%
Slide 24: CRE Office - Detail
CRE Office - Detail As of 03/31/2024 CRE Office (1) Office - LTV 60% New York; 13% Texas; 12% 50% 40% 38% 38% 30% 20% 14% South Florida; 75% 10% 10% —% 0% 50% or 51-60% 61-70% 71-80% 81% or Total: $318 million less more Loan Portfolio Percentage: 5.1% (1) CRE office loans held for investment above $
Slide 25: Appendices
Appendices
Slide 26: Non-GAAP Financial Measures Reconciliations
Appendix 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 related
Slide 27: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended ($ in thousands) March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Total noninterest expenses $ 66,594 $ 109,702 $ 64,420 $ 72,500 $ 64,733 Less: non-routine noninterest expense items Re
Slide 28: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended, ($ in thousands, except percentages and per share data) March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Net income (loss) attributable to Amerant Bancorp Inc. $ 10,568 $ (17,123) $ 22
Slide 29: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended, ($ in thousands, except percentages and per share data) March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Net income (loss) / Average stockholders' equity (ROE) 5.69 % (9.22)% 11.93 % 3
Slide 30: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) Three Months Ended, ($ in thousands, except percentages and per share data) March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Tangible common stockholders' equity $ 713,150 $ 711,039 $ 692,969 $ 696,832 $
Slide 31: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 Non-GAAP Financial Measures Reconciliations (cont'd) (1) In the first quarter of 2024 and in the fourth and third quarter of 2023, includes $12.4 million, $12.0 million and $7.4 million of provision for credit losses on loans, respectively. Provision for unfunded commitments (contingencie
Slide 32: Income Statement Highlights - 1Q24 vs 4Q23
Income Statement Highlights - 1Q24 vs 4Q23 ($ in thousands) 1Q24 4Q23 Change Total Interest Income Loans $ 122,705 $ 127,090 $ (4,385) Investment securities 16,091 14,460 1,631 Interest earning deposits with banks and other interest income 5,829 4,019 1,810 Total Interest Expense — Interest bearing
Slide 33: Glossary
Glossary 33 • ACL - Allowance for Credit Losses • MV - Market Value • AFS - Available for Sale • NPL - Non-Performing Loans • AOCI - Accumulated Other Comprehensive Income • NPA - Non-Performing Assets • CET 1 - Common Equity Tier 1 capital ratio • NIB - Noninterest Bearing • CRE - Commercial Real E
Slide 34: Glossary (cont'd)
Glossary (cont'd) 34 • TCE Ratio - 1Q24 includes $75.9 million accumulated unrealized losses net of taxes primarily related to the decline in the fair value of debt securities available for sale, which are carried at fair value, as a result of increases in market rates. • Total Gross Loans - include
Slide 35: AMERANT BANK Imagine tomorrow.
| AMERANT BANK Imagine tomorrow.