Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q4 2022 Earnings Presentation
26 slides from Amerant Bancorp's earnings presentation, Jan 19, 2023
Slide 1: Earnings Call Fourth Quarter 2022
Earnings Call January 20, 2023 Fourth Quarter 2022
Slide 2: Important Notices and Disclaimers
2Important 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: Performance Highlights 4Q22
3 • All capital ratios are above "well capitalized" levels • Cash dividend of $0.09 per share of Amerant common stock paid out on November 30, 2022 Performance Highlights 4Q22 Capital Business • Net income attributable to the Company of $18.8 million(1) in 4Q22 compared to $20.9 million in 3Q22 • Co
Slide 4: Core PPNR - 4Q22
4Core PPNR(1) - 4Q22 (1) Non-GAAP Financial Measure. See Appendix 1 for a reconciliation to GAAP. (2) Net income attributable to the Company results in $22.0 million in the fourth quarter of 2022, excluding the CECL retroactive effect corresponding to the first, second and third quarters of 2022. (3
Slide 5: Key Actions - 4Q22
5Key Actions - 4Q22 – Closed on OREO property at no additional loss on October 14, 2022 – Banking center updates: ◦ Closed Pembroke Pines, FL location on 10/17/22, as previously announced ◦ Opened in University Place in Houston on 10/31/22 – closed South Shepherd banking center ◦ Downtown Miami loca
Slide 6: Focused on Key Performance Metrics
6 65.36% 58.42% 3Q22 4Q22 20.0% 19.4% 3Q22 4Q22 11.34% 10.89% 3Q22 4Q22 3.61% 3.96% 3Q22 4Q22 Focused on Key Performance Metrics NIB Deposits/ Total Deposits Tier 1 Capital Ratio Higher Operating Profitability Rationalizing Cost Structure (1) Calculated based upon the average daily balance of total
Slide 7: Amerant Mortgage (AMTM)
7Amerant Mortgage ("AMTM") • During 2022, the Company has purchased $413.0 million in loans through Amerant Mortgage, which includes loans originated and purchased from different channels • The current pipeline shows $63.6 million or 88 applications as of January 12, 2023 Data as of December 31, 202
Slide 8: Investment Portfolio Balances and Yields
8 86.8% 13.2% U.S. Gov't sponsored enterprises 41.3% Collateralized loan obligations 0.5% U.S. Gov't agency 31.3% Corporate debt 26.5% Other 0.4% $1,175.3 $1,052.3 $1,057.6 $118.2 $234.3 $242.1 $0.3 $12.2 $11.4 2.37% 3.01% 3.59% 4Q21 3Q22 4Q22 0 500 1,000 1,500 89.4% 10.6% Investment Portfolio Balan
Slide 9: Loan Portfolio Highlights
9 45.3% 43.3% 41.4% 41.3% 39.3% 17.6% 19.3% 19.4% 18.7% 20.2% 17.3% 16.2% 16.3% 15.3% 15.1% 12.2% 12.7% 13.3% 15.8% 16.7% 7.6% 8.5% 9.6% 8.9% 8.7% 4.10% 4.16% 4.38% 5.06% 5.85% 4Q21 1Q22 2Q22 3Q22 4Q22 69.8% 71.3% 71.7% 71.6% 72.1% 18.4% 19.4% 19.3% 20.6% 20.8% 8.8% 6.5% 6.1% 5.3% 4.8% 3.0% 2.9% 2.9
Slide 10: Credit Quality
10 1.4x 1.2x 2.1x 2.9x 2.2x 4Q21 1Q22 2Q22 3Q22 4Q22 $69.9 $56.1 $52.0 $53.7 $83.5 1.29% 0.99% 0.91% 0.83% 1.22% 4Q21 1Q22 2Q22 3Q22 4Q22 0.52% 0.29% 0.29% 0.09% 0.59% 4Q21 1Q22 2Q22 3Q22 4Q22 Net Charge-Offs / Average Total Loans (3)(4)(5) Credit Quality Allowance for credit Losses (2) ($ in millio
Slide 11: Deposit Highlights
11 $5,631 $5,692 $6,203 $6,588 $7,044 $3,013 $3,076 $3,601 $3,839 $3,927$1,048 $951 $937 $926 $1,120 $387 $347 $366 $504 $629$1,183 $1,318 $1,299 $1,319 $1,368 0.41% 0.38% 0.48% 0.83% 1.38% 4Q21 1Q22 2Q22 3Q22 4Q22 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 $2,635 $2,529 $2,494 $2,423 2019 2020 202
Slide 12: Net Interest Income and NIM
12 $55.8 $55.6 $58.9 $69.9 $82.2 3.17% 3.18% 3.28% 3.61% 3.96% Net Interest Income NIM 4Q21 1Q22 2Q22 3Q22 4Q22 0 10 20 30 40 50 60 70 80 NII increased in 4Q22 primarily due to: • Higher rates on total interest earning assets, primarily in loans, AFS securities and interest earning deposits with ban
Slide 13: Loan Portfolio & Repricing Detail; Interest Rate Sensitivity
13 Swap 2% Fixed 48% UST 1% Libor 20% Prime 13% SOFR 16% <1 year; 59% 1-3 years; 5% 4-5 years; 5% 5+ years; 31% 337 343 349 358 367 -100 bps -50 bps BASE +50 bps +100 bps 250 300 350 400 (December 31, 2022) Fixed 48% Adjustable 52% Interest Rate Sensitivity By Interest TypeBy Rate Type By Repricing
Slide 14: Noninterest Income
14 $14.0 $12.9 $16.0 $24.4 $4.5 $4.6 $4.6 $4.6 $4.8 $5.0 $4.6 $4.3 $4.6 $4.1 $0.8 $(2.6) $1.5 $(3.4) $3.4 $2.8 $4.7 $2.5 $3.1 $62.4 $3.2 $1.0 $2.8 $3.4 $(1.3) $0.9 $1.0 $(0.7) $11.4 4Q21 1Q22 2Q22 3Q22 4Q22 0 10 20 30 12% 88% 18% 82% Noninterest Income Mix Noninterest Income Mix Commentary Nonintere
Slide 15: Noninterest Expense
15 • Noninterest expense increased in 4Q22 primarily due to: – Higher severance expenses and higher bonus-variable compensation – Higher loan-level derivative expense related to client derivative transactions – Higher advertising expenses – Higher professional and other services fees in connection w
Slide 16: Closing Remarks
Closing Remarks
Slide 17: Supplemental Loan Portfolio Information
Supplemental Loan Portfolio Information
Slide 18: Loans Held for Investment Portfolio by Industry
18Loans Held for Investment Portfolio by Industry • Diversified portfolio - highest sector concentration, other than real estate, at 10.5% of total loans • 71% of total loans secured by real estate • Main concentrations: – CRE or Commercial Real Estate – Wholesale - Food – Retail - Gas stations – Se
Slide 19: Commercial Real Estate (CRE) - Detail
19Commercial Real Estate (CRE) -Detail CRE Type South FL Central FL Other FL TX NY Other Total % Total CRE % Total Loans Income Producing (1) Land and Construction Retail $ 427 $ 43 $ 5 $ 160 $ 104 $ — $ 739 27.3 % 10.8 % $ 731 $ 7 Multifamily 258 93 3 492 123 — $ 969 35.8 % 14.1 % 802 167 Office 25
Slide 20: CRE Retail - Detail
20 15% 29% 35% 18% 3% 50% or less 50- 60% 60- 70% 70- 80% 80% or more 0% 10% 20% 30% 40% 50% 60% CRE Retail -Detail (As of 12/31/2022) • Florida and Texas primarily include neighborhood shopping centers or service centers with basic needs related anchor stores, as well as the retail corridor in Miam
Slide 21: Appendix Non-GAAP Financial Measures Reconciliations
21Appendix 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 relate
Slide 22: Three Months Ended Years Ended December 31, ($ in thousands) December 31, 2022 September
22 Three Months Ended Years Ended December 31, ($ in thousands) December 31, 2022 September 30, 2022 December 31, 2021 2022 2021 (audited) Total noninterest expenses $ 62,241 $ 56,113 $ 55,088 $ 241,413 $ 198,242 Less: non-routine noninterest expense items Restructuring costs (3) Staff reduction cos
Slide 23: Non-GAAP Financial Measures Reconciliations (cont'd)
23Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Years Ended December 31, ($ in thousands, except percentages and per share data) December 31, 2022 September 30, 2022 December 31, 2021 2022 2021 (audited) Net income attributable to Amerant Bancorp Inc. (1) $ 18,7
Slide 24: Three Months Ended, Years Ended December 31, ($ in thousands, except percentages, share data
24 Three Months Ended, Years Ended December 31, ($ in thousands, except percentages, share data and per share amounts) December 31, 2022 September 30, 2022 December 31, 2021 2022 2021 (audited) Net income / Average stockholders' equity (ROE) 10.33 % 11.28 % 32.04 % 8.45 % 14.19 % Plus: after tax imp
Slide 25: Footnotes to Reconciliations
25 (1) Net income attributable to the Company results in $22.0 million in the fourth quarter of 2022, excluding the CECL retroactive effect corresponding to the first, second, and third quarters of 2022. The provision for credit losses attributable to the fourth quarter of 2022 is $16.9 million, exc
Slide 26: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com