Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Investor Presentation (March 2021)
31 slides from Amerant Bancorp's investor presentation, Mar 31, 2021
Slide 1: Investor Update
amerantbank.com Investor Update As of March 31, 2021
Slide 2: Important Notices and Disclaimers
2 Important Notices and Disclaimers Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including, statements with respect to our objectives, expectations and intentions and other
Slide 3: About Us
About Us 3 Financial Highlights • Founded in 1979 (in millions, except per share (1) • Acquired in 1987 by MSF data and percentages) 2018 2019 2020 1Q21 • 80.1% spin-off in Aug. 2018 Balance Sheet History • Completed IPO in Dec. 2018 Assets $ 8,124 $ 7,985 $ 7,771 $ 7,751 • Rebranded as Amerant in J
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 customer • Loan book well- • Wealth management • Dynamic initia
Slide 5: Experienced Management Team
5 Experienced Management Team • Vice-Chairman & Chief Executive Officer since March 2021 • Served as Executive Vice-Chairman from Feb 2021 until Mar 2021 and has served on Jerry the Board of Directors since July 2019 Plush • Former partner at Patriot Financial Partners Vice-Chairman & • Prior experi
Slide 6: Growing and Diverse Markets
Growing and Diverse Markets 6 (1) (2) Branch Footprint Deposit Market Share Market Demographics March 31, 2021 June 30, 2020 2010 – 2021 Est. Population Change 18 banking centers Deposits % of Market 22.2% Market Branches ($mm) AMTB Share % (3) 12.9% Miami-Dade, FL 10 $4,992 81.4 3.1 7.2% Florida Br
Slide 7: Performance Highlights 1Q21
Performance Highlights 1Q21 7 • Net income of $14.5 million in 1Q21, up 70.7% compared to 4Q20; Diluted earnings per share was $0.38 for 1Q21, compared to $0.20 in 4Q20 Earnings (1) • PPNR was $18.1 million, an increase of 112.1% compared to 4Q20 • Total loans were $5.8 billion, down 1.50% from 4Q20
Slide 8: Focused on Key Performance Metrics
Focused on Key Performance Metrics 8 Higher Robust Rationalizing Operating Deposit Base Cost Structure Profitability 85.8% 17.2% 2.61% 2.66% 15.2% 70.7% 4Q20 1Q21 4Q20 1Q21 4Q20 1Q21 NIB Deposits/ Net Interest Efficiency Total Deposits Margin Ratio Robust Capital Strong Credit Improved Profitability
Slide 9: Investment Portfolio
Investment Portfolio 9 (1) Balances and Yields Highlights ($ in millions) $24.2 $70.3 1,500 $24.3 $24.0 • Effective duration increased vs. 4Q20 due to lower $58.1 $104.7 expected prepayments and longer-duration 1,000 2.45% 2.21% 2.15% securities purchased during 1Q21 500 $1,601.3 $1,225.1 $1,190.2 0
Slide 10: Loan Portfolio Highlights
Loan Portfolio Highlights 10 Loan Composition Geographic Mix (Domestic) 2.5% 2.2% 3.2% 4.2% 4.8% 10.0% 10.1% 10.1% 3.2% 3.0% 3.0% 3.1% 3.0% 10.9% 10.9% 13.3% 12.9% 12.6% 12.9% 12.9% 16.3% 16.0% 15.8% 16.2% 16.3% 18.2% 17.8% 17.9% 17.8% 18.0% 4.31% 19.4% 21.5% 20.5% 20.1% 19.5% 51.8% 50.2% 50.4% 48.6
Slide 11: Credit Quality
Credit Quality 11 Non-Performing Assets (1) / Total Assets Allowance for Loan Losses ($ in millions) $119.7 1.13% 1.16% $110.9 $110.9 $110.9 1.08% 0.95% 2.04% 1.93% 1.93% $72.9 1.90% 0.41% 1.29% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Allowance for Loan Losses ALL as a % of Total Loans All
Slide 12: Deposit Highlights
Deposit Highlights 12 Deposit Composition Mix by Country of Domicile ($ in millions, except for percentages) International Deposits 7,000 ($ in millions) $6,024 ~8% Com 6,000 $5,842 $5,878 pou nd Annual $5,732 $5,678 Decline Rat $956 e $780 $917 $872 $978 5,000 $647 $588 $508 $634 $553 $3,031 $2,635
Slide 13: Net Interest Income and NIM
Net Interest Income and NIM 13 Net Interest Income (NII) and NIM (%) Commentary ($ in millions, except for percentages) 60 NIM increased in 1Q21 primarily due to: $49.2 $48.7 50 $47.6 $46.3 $45.4 – Lower overall cost of deposits 40 – Reduced customer CDs volumes 2.65% 2.66% 2.61% 30 2.44% 2.39% Net
Slide 14: Noninterest Income Mix
14 Noninterest Income Mix Noninterest Income Mix Commentary ($ in millions) • Net gain on sale of securities from portfolio $21.9 repositioning 22 $19.8 $20.3 20 $3.9 $3.5 • Other noninterest income in 4Q20 included loss 18 $4.4 recorded on sale of operations center 16 $14.2 14 • 1Q21 Offsets: absen
Slide 15: Noninterest Expense
Noninterest Expense 15 Noninterest Expense Mix Commentary ($ in millions, except for FTEs) Decrease in noninterest expense in 1Q21 60 primarily due to: $51.6 50 • 4Q20 salaries and employee benefits $44.9 $45.5 expenses included severance costs $43.6 $19.3 • Lower salaries and employee benefits 40 $
Slide 16: Interest Rate Sensitivity
Interest Rate Sensitivity 16 (1) Impact on NII from Interest Rate Change Loan Portfolio & Repricing Detail (As of March 31, 2021) (As of March 31, 2021) By Rate Type By Interest Type 2.8% Swap Fixed 0.0% 1.8% 4% 52% Fixed -1.6% -2.6% Prime 52% 200 ($ in Millions) 7% 180 $208 $210 Adjustable $199 $20
Slide 17: Initiatives: Near and Long-term
Initiatives: Near and Long-term 17 • “Deposits First” • Brand Awareness • Rationalization of Lines of Business and Geographies • Path to 60% Efficiency Ratio • Capital Structure Optimization Focused on increasing profitability and shareholder value amerantbank.com
Slide 18: Supplemental Information: COVID-19 Update
Supplemental Information COVID-19 Update amerantbank.com
Slide 19: Business Update Related to COVID-19
1 Business Update Related to COVID-19 19 • Amerant’s Business Continuity Plan (“BCP”) continues to successfully support employees with remote work capabilities Business Continuity • Company moved into a new phase of reintroducing a higher number of employees back Plan into the workplace following sa
Slide 20: Loan Portfolio by Industry
Loan Portfolio by Industry 20 (Mar 31, 2021) Real Non-Real % Total Unfunded (8) Highlights ($ in millions) Estate Estate Total Loans 2 Commitments (1) Financial Sector $ 5 $ 65 $ 70 1.2 %4 $ 24 Construction and Real Estate & Leasing: • Diversified portfolio - highest sector concentration, other Comm
Slide 21: Industries with Escalated Monitoring: CRE Hotels
Industries with Escalated Monitoring 21 CRE Hotels (As of 03/31/2021) Hotels Hotels - LTV 50% 40% Boutique 36% 36% 28% 30% Full Service 36% 20% 13% 11% Limited Service 10% 36% 3% 0% 50% or 50-60% 60-70% 70-80% 80% or Total: $287 million less more Loan Portfolio Percentage: 5.0% Highlights • CRE Hote
Slide 22: Industries with Escalated Monitoring: CRE Retail
Industries with Escalated Monitoring 22 CRE Retail (As of 03/31/2021) CRE Retail (1) CRE Retail - Single Retail - LTV (1) Tenant 60% Groceries 4% 50% Neighborhood Center Vacant 41% Theme/Festival Center 12% 20% Education 14% 40% 9% 30% Restaurant 23% 3% 19% Single Tenant 20% Food and Community Cente
Slide 23: Appendices
Appendices amerantbank.com
Slide 24: Summary Financial Statements
Appendix 1 24 Summary Financial Statements December 31, March 31, (in millions) 2018 2019 2020 2021 Assets Cash and cash equivalents $85.7 $121.3 $214.4 $233.5 (1) Total Securities 1,671.2 1,666.5 1,307.6 1,318.8 Loans Held for Sale (HFS) — — — 1.0 Loans, Gross (Excl HFS) 5,920.2 5,744.3 5,842.3 5,7
Slide 25: Summary Financial Statements (cont'd)
25 Appendix 1 Summary Financial Statements (cont’d) Years ended December 31, Three months ended (in thousands) 2018 2019 2020 March 31, 2021 Total Interest Income $309,358 $312,974 $260,554 $60,329 Total Interest Expense 90,319 99,886 71,002 12,760 Net Interest Income $219,039 $161,826 $189,552 $47,
Slide 26: Non-GAAP Financial Measures Reconciliations
26 Appendix 2 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, pre-provision net revenue, ROA and R
Slide 27: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 27 Non-GAAP Financial Measures Reconciliations (cont’d)* (in thousands) 1Q21 2020 2019 2018 Total noninterest income $ 14,163 $ 73,470 $ 57,110 $ 53,875 (1) Plus: loss on sale of the Beacon operations center — 1,729 — — Less: gain on sale of vacant Beacon land — — (2,795) — Adjusted nonin
Slide 28: Non-GAAP Financial Measures Reconciliations (cont'd)
28 Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d)* (in thousands) 1Q21 2020 2019 2018 Net (loss) income $ 14,459 $ (1,722) $ 51,334 $ 45,833 Plus after-tax restructuring costs: Restructuring costs before income tax effect 240 11,925 5,046 6,395 Income tax effect (48) (7,187) (1,001)
Slide 29: Non-GAAP Financial Measures Reconciliations (cont'd)
(*) See footnotes in Slide 30 Appendix 2 29 Non-GAAP Financial Measures Reconciliations (cont’d)* 1Q21 2020 2019 2018 Basic earnings (loss) per share $ 0.38 $ (0.04) $ 1.21 $ 1.08 Plus: after tax impact of restructuring costs 0.01 0.11 0.09 0.12 Plus: after tax impact of total spin-off costs — — — 0
Slide 30: Non-GAAP Financial Measures Reconciliations (cont'd)
30 Appendix 2 Non-GAAP Financial Measures Reconciliations (cont’d) (in thousands, except per share data and percentages) 1Q21 2020 2019 2018 Tangible common equity ratio: Stockholders' equity $ 785,014 $ 783,421 $ 834,701 $ 747,418 Less: Goodwill and other intangibles (21,515) (21,561) (21,744) (21,
Slide 31: Thank you
AMERANT amerantbank.com Thank you