Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Investor Presentation (September 2021)
33 slides from Amerant Bancorp's investor presentation, Sep 30, 2021
Slide 1: Investor Update
amerantbank.com Investor Update As of September 30, 2021
Slide 2: Important Notices and Disclaimers
2 Important Notices and Disclaimers Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including statements regarding the proposed clean-up merger (the "Merger"), the Class A Re
Slide 3: About Us
About Us 3 Financial Highlights (in millions, except per share data 3Q21 YTD 2020 2019 2018 and percentages) Balance Sheet • Founded in 1979 Assets $ 7,489 $ 7,771 $ 7,985 $ 8,124 History • Completed IPO in Dec. 2018 Loans 5,479 5,842 5,744 5,920 • Rebranded as Amerant in June 2019 Deposits 5,626 5,
Slide 4: Investment Opportunity Highlights
4 Investment Opportunity Highlights Established Strong and Significant Fee Pathway to Well-Positioned Franchise in Diverse Deposit Loan Income Strong Attractive Base Portfolio Platform Profitability Markets • Long history with • Growing domestic • Loan book well- • Wealth management • Dynamic initia
Slide 5: Experienced Management Team
5 Experienced Management Team Jerry Vice-Chairman & • Vice-Chairman & Chief Executive Officer since March 2021 Plush Chief Executive Officer • Served as Executive Vice-Chairman from Feb 2021 until Mar 2021 and has served on the Board of Directors since July 2019 Carlos Executive Vice President & • E
Slide 6: Growing and Attractive Markets
Growing and Attractive Markets 6 (1) (2) Branch Footprint Deposit Market Share Market Demographics October 2021 June 30, 2021 17 banking centers Deposits % of Market Market ($mm) AMTB Share % (3) Miami-Dade, FL 4,686 82.1 2.6 2010 – 2021 Est. Population Change 22.2% Florida Broward, FL $326 5.7 0.5
Slide 7: Performance Highlights 3Q21
Performance Highlights 3Q21 7 (1) • Core pre-provision net revenue (PPNR) was $18.3 million compared to $16.9 million in 2Q21 Earnings • Net income attributable to the Company of $17.0 million in 3Q21, up 6.7% compared to 2Q21 • Diluted earnings per share was $0.45 for 3Q21, compared to $0.42 in 2Q2
Slide 8: Key Actions - 3Q21
Key Actions - 3Q21 8 Several key actions of note, among others: – Non-performing loans decreased 31.7%, compared to 2Q21; approximately $16.4 million from charge-offs (previously fully reserved), $13 million from upgrades and $9.4 million transferred to OREO – Continued downward repricing of custome
Slide 9: Focused on Key Performance Metrics
Focused on Key Performance Metrics 9 Higher Robust Rationalizing Robust Capital Strong Credit Operating Improved Profitability Deposit Base Cost Structure Position Coverage Profitability 1.86% 1.59% 2.94% 0.90% 12.9% 13.3% 21.5% 2.81% 0.83% 8.11% 8.38% 18.8% 77.8% 74.2% 2Q21 3Q21 2Q21 3Q21 2Q21 3Q21
Slide 10: Amerant Mortgage ("AMTM")
Amerant Mortgage ("AMTM") 10 Highlights Data as of September 30, 2021 In Thousands • Venture launched on Dec. 8, 2020 • Started taking applications on May 24, 2021 • Amerant Bank owns 51% and has 3 of 5 board seats; provides a line of credit of $10 million and a warehouse line for mortgage originati
Slide 11: Investment Portfolio
Investment Portfolio 11 (1) Balances and Yields Highlights ($ in millions) • Effective duration extended vs. 2Q21 due to lower 1,500 $24.4 $24.0 $23.9 $61.7 $130.5 expected prepayments in light of higher long term $93.3 1,000 rates during 3Q21 2.26% 2.25% 2.14% 500 $1,317.7 $1,194.1 $1,220.4 0 3Q20
Slide 12: Loan Portfolio Highlights
12 Loan Portfolio Highlights (1) (1) Loan Composition Geographic Mix (Domestic) 3.2% 4.2% 4.8% 5.5% 6.5% 10.1% 10.9% 10.9% 3.92% 3.0% 3.1% 3.0% 3.0% 3.1% 11.0% 3.89% 11.4% 12.6% 12.9% 12.9% 13.1% 11.4% 15.8% 16.2% 16.3% 16.8% 17.1% 17.9% 17.8% 18.0% 18.4% 17.2% 3.76% 3.77% 20.5% 3.64% 20.1% 19.5% 18
Slide 13: New York LPO Update
New York LPO Update 13 • As announced in our 2Q21 call, AMTB officially closed the NYC loan production office • Reduced staff from 6 to 1 FTEs • Sub-lease of former office at 52nd and Madison expected to commence in 4Q21 • Elected to market and sell portion of portfolio in 3Q21 to shorten duration a
Slide 14: Credit Quality
Credit Quality 14 Non-Performing Assets (1) / Total Assets Allowance for Loan Losses ($ in millions) 1.61% $116.8 1.24% $110.9 $110.9 1.13% 1.16% $104.2 1.08% $83.4 1.97% 1.90% 1.93% 1.86% 1.59% 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Allowance for Loan Losses ALL as a % of Total Loans All
Slide 15: Deposit Highlights
Deposit Highlights 15 Deposit Composition Mix by Country of Domicile ($ in millions, except for percentages) International Deposits ($ in millions) 7,000 6,000 $5,878 $5,732 $5,678 $5,674 $5,626 $917 $872 $978 $1,066 $1,211 $3,031 45% 5,000 $2,635 $2,529 $2,535 $508 $634 $553 $531 $1,767 $433 4,000
Slide 16: Net Interest Income and NIM
Net Interest Income and NIM 16 Net Interest Income (NII) and NIM (%) Commentary ($ in millions, except for percentages) NII increased in 3Q21 primarily due to: 60 • Lower overall cost of deposits: $51.8 $48.7 $50.0 – Declines in average CD balances 50 $47.6 2.94% $45.4 – Downward repricing of CDs 40
Slide 17: Noninterest Income Mix
17 Noninterest Income Mix Noninterest Income Mix Commentary Noninterest income decreased in 3Q21 primarily due to: ($ in millions) • The following nonrecurring items recorded in 2Q21: – $3.8 million net gain in connection with the sale 22 of $95.1 million of PPP loans in May 2021 $20.4 20 – $2.5 mil
Slide 18: Noninterest Expense
Noninterest Expense 18 Noninterest Expense Mix Commentary ($ in millions, except for FTEs) • Noninterest expense decreased in 3Q21 primarily due to: 60 – Lower salaries and employee benefits expenses resulting from the nonrecurring of the $3.3 million in $51.6 severance expenses recorded in 2Q21 $51
Slide 19: Interest Rate Sensitivity
Interest Rate Sensitivity 19 (1) Impact on NII from Interest Rate Change Loan Portfolio & Repricing Detail (As of September 30, 2021) (As of September 30, 2021) By Rate Type By Interest Type Swap Fixed 4% 53% Fixed 2.3% 53% 1.4% Prime 0.0% -1.2% 9% -2.3% Adjustable 200 47% Libor 33% UST ($ in Millio
Slide 20: Initiatives Update
Initiatives Update 20 • Increased percentage of noninterest-bearing deposits to total deposits and reduced brokered deposits to total deposits towards our targets of 25% and 5%, respectively; loan to deposit ratio Deposits First in mid 90% range • Added talent and capabilities to our treasury manage
Slide 21: Initiatives Update
Initiatives Update 21 • As announced on Sep. 13th, the Company intends to effect a clean-up merger, subject to shareholder approval, providing for: – Each outstanding share of Class B common stock to be automatically converted to 0.95 of a share of Class A common stock – A new class of non-voting Cl
Slide 22: Business Transformation Announcement
22 Business Transformation Announcement On November 4, 2021 Amerant announced a new multi-year outsourcing agreement with financial technology leader FIS®, as follows: – FIS to assume full responsibility over a significant number of the Bank’s support functions and staff, including certain back-offi
Slide 23: Brand Awareness
Brand Awareness 23 amerantbank.com
Slide 24: Brand Awareness
Brand Awareness 24 amerantbank.com
Slide 25: Appendices
Appendices amerantbank.com
Slide 26: Summary Financial Statements
Appendix 1 26 Summary Financial Statements September December 31, 30, (in millions) 2021 2020 2019 2018 Assets Cash and cash equivalents $166.2 $214.4 $121.3 $85.7 (1) Total Securities 1,375.0 1,307.6 1,666.5 1,671.2 Mortgage Loans Held for Sale, at fair value 5.8 — — — Loans held for sale, at lower
Slide 27: Summary Financial Statements (cont'd)
Appendix 1 27 Summary Financial Statements (cont’d) Nine months ended September 30, (in thousands) 2021 2020 2019 2018 Total Interest Income $182,915 $260,554 $312,974 $309,358 Total Interest Expense 33,554 71,002 99,886 90,319 Net Interest Income $149,361 $189,552 $161,826 $219,039 (Reversal of) Pr
Slide 28: Non-GAAP Financial Measures Reconciliations
Appendix 2 28 Non-GAAP Financial Measures Reconciliations Explanation of Certain Non-GAAP Financial Measures This Presentation contains certain adjusted financial information, and their effects on noninterest income, noninterest expense, income taxes, net income, Core pre-provision net revenue, ROA
Slide 29: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 29 Non-GAAP Financial Measures Reconciliations (cont’d)* (in thousands) 3Q21 YTD 2020 2019 2018 Net income (loss) attributable to Amerant Bancorp Inc. $ 47,452 $ (1,722) $ 51,334 $ 45,833 Plus: (reversal of) provision for loan losses (10,000) 88,620 (3,150) 375 Plus: provision for income
Slide 30: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 30 Non-GAAP Financial Measures Reconciliations (cont’d)* (in thousands) 3Q21 YTD 2020 2019 2018 Net income (loss) attributable to Amerant Bancorp Inc. $ 47,452 $ (1,722) $ 51,334 $ 45,833 Plus after-tax restructuring costs: Restructuring costs before income tax effect 5,162 11,925 5,046 6
Slide 31: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 31 Non-GAAP Financial Measures Reconciliations (cont’d)* 3Q21 YTD 2020 2019 2018 Net income (loss) / Average total assets (ROA) 0.83 % (0.02)% 0.65 % 0.55 % Plus: after tax impact of restructuring costs 0.07 % 0.06 % 0.05 % 0.06 % Plus: after tax impact of total spin-off costs — % — % — %
Slide 32: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 32 Non-GAAP Financial Measures Reconciliations (cont’d) (in thousands, except per share data and percentages) 3Q21 YTD 2020 2019 2018 Tangible common equity ratio: Stockholders' equity $ 812,662 $ 783,421 $ 834,701 $ 747,418 (8) Less: Goodwill and other intangibles (22,529) (21,561) (21,7
Slide 33: Thank you
AMERANT amerantbank.com Thank you
Amerant Bancorp — Investor Presentation (September 2021) on 6ix