Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Investor Presentation (December 2021)
33 slides from Amerant Bancorp's investor presentation, Dec 31, 2021
Slide 1: Investor Update
amerantbank.com Investor Update As of December 31, 2021
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers 2 Forward-Looking Statements This presentation contains “forward-looking statements” including statements regarding our outsourcing agreement with FIS, and the Company's ability to achieve savings and greater operational efficiencies, as well as statements with resp
Slide 3: Investment Opportunity Highlights
Investment Opportunity Highlights 3 – Established franchise/presence in high-growth markets – Miami and Houston – Strong and diverse deposit base; deposits first focus – Strong reserve coverage and disciplined credit culture – Significant fee income capabilities – Business Transformation underway to
Slide 4: About Us
About Us 4 Financial Highlights (in millions, except per share data 2021 2020 2019 2018 and percentages) Balance Sheet • Founded in 1979 Assets $ 7,638 $ 7,771 $ 7,985 $ 8,124 History • Completed IPO in Dec. 2018 Loans $ 5,568 $ 5,842 $ 5,744 $ 5,920 • Rebranded as Amerant in June 2019 Deposits $ 5,
Slide 5: Growing and Attractive Markets
Growing and Attractive Markets 5 (1) (2) Branch Footprint Deposit Market Share Market Demographics December 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 – 2022 Population Change 22.9% Florida Broward, FL $326 5.7 0.5 11.9
Slide 6: Performance Highlights 4Q21
Performance Highlights 4Q21 6 (1) • Core pre-provision net revenue (PPNR) was approximately $19 million compared to $18.3 million in 3Q21 Earnings • Net income attributable to the Company of $65.5 million in 4Q21, up 284.4% compared to 3Q21 primarily driven by the sale of headquarters building and a
Slide 7: Updates 1Q22
7 Updates 1Q22 • Declared a $0.09 cash dividend payable in February 2022 • Successfully completed the previously announced $50 million Class A shares buyback program; Board authorized a new share repurchase program for up to $50 million in share repurchases • Sold $57.3 million in loans from NY port
Slide 8: Shares Outstanding - Post Merger
Shares Outstanding -Post Merger 8 Class A + Class B outstanding prior to Merger on 10/28/21: 37,526,799 Reduction from Class B conversion 423,556 Class A fractional shares/odd lots (99 or less) cash out 281,725 (1) Class A Repurchase Program 1,545,512 (2) Others 44,804 Issued and outstanding as of J
Slide 9: Core PPNR - 4Q21
9 Core PPNR - 4Q21 (1) (( 4Q21 3Q21 Net income attributable to Amerant Bancorp Inc. 65,469 $ 17,031 Plus: reversal of provision for loan losses (6,500) (5,000) Plus: provision for income tax expense 20,172 5,454 (1) Pre-provision net revenue $ 79,141 $ 17,485 Plus: restructuring costs 1,895 758 Less
Slide 10: Key Actions - 4Q21
Key Actions - 4Q21 10 Several key actions of note, among others: – Focus on reducing non performing loans resulted in significant decline to $49.8 million as of December 31, 2021, compared to $82.7 million as of September 30, 2021 – Closed Wellington branch in October 2021; signed lease and announce
Slide 11: Focused on Key Performance Metrics
Focused on Key Performance Metrics 11 Higher Robust Rationalizing Robust Capital Strong Credit Operating Improved Profitability Deposit Base Cost Structure Position Coverage Profitability TARGET: TARGET: TARGET: TARGET: TARGET: TARGET: > 20% > 3.50% 60% 1.00% 10% > 9% 1.59% 74.2% 13.3% 13.5% 1.29% 2
Slide 12: Amerant Mortgage ("AMTM")
Amerant Mortgage ("AMTM") 12 Data as of December 31, 2021 Highlights In Thousands • In the fourth quarter of 2021, AMTM received 166 applications and funded 61 loans totaling $32 million • Since starting operations in May 2021, AMTM received 299 applications and funded 109 loans totaling $52.6 milli
Slide 13: Investment Portfolio
Investment Portfolio 13 (1) Balances and Yields Highlights ($ in millions) • Effective duration increased vs. 4Q20 1,500 $24.3 $23.9 $0.3 $58.1 $130.5 $118.2 due to lower levels of prepayments 1,000 2.37% received throughout the year 2.21% 2.25% 500 $1,225.1 $1,220.4 $1,175.3 0 4Q20 3Q21 4Q21 Availa
Slide 14: Loan Portfolio Highlights
14 Loan Portfolio Highlights Geographic Mix (Domestic) (1) (1) Loan Composition Geographic Mix 4.2% 4.8% 5.5% 6.5% 7.6% 10.9% 10.9% 11.0% 11.4% 12.2% 3.1% 3.0% 3.0% 3.1% 3.0% 12.9% 12.9% 13.1% 11.4% 8.8% 16.2% 16.3% 16.8% 17.1% 17.3% 17.2% 18.4% 17.8% 18.0% 18.4% 20.1% 19.5% 18.1% 16.9% 17.6% 3.92%
Slide 15: Credit Quality
Credit Quality 15 Non-Performing Assets (1) / Total Assets Allowance for Loan Losses ($ in millions) 1.61% $110.9 $110.9 $104.2 1.16% 1.24% 1.13% $83.4 1.90% 1.93% 1.86% $69.9 0.78% 1.59% 1.29% 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 Allowance for Loan Losses ALL as a % of Total Loans (3)
Slide 16: Deposit Highlights
Deposit Highlights 16 Deposit Composition Mix by Country of Domicile ($ in millions, except for percentages) International Deposits ($ in millions) 7,000 6,000 $5,732 $5,678 $5,675 $5,626 $5,631 $872 $978 $1,066 $1,211 $1,183 $3,031 5,000 $2,635 $2,529 $2,494 44% $634 $553 $531 $433 $387 4,000 $1,54
Slide 17: Net Interest Income and NIM
17 Net Interest Income and NIM Net Interest Income (NII) and NIM (%) Commentary ($ in millions, except for percentages) 60 $55.8 $51.8 3.17% NII increased in 4Q21 primarily due to: $50.0 50 $48.7 $47.6 2.94% • Higher average yields, including 40 prepayment fees 2.81% 30 2.61% 2.66% • Higher average
Slide 18: Noninterest Income Mix
18 Noninterest Income Mix Noninterest Income Mix Commentary ($ in millions) $77.3 Noninterest income increased in 4Q21 primarily due to: 24 $62.4 • A $62.4 million gain on the sale of the Company’s 22 headquarters building 20 • Higher income from: 18 ◦ Client derivatives $15.7 16 ◦ Brokerage, adviso
Slide 19: Noninterest Expense
Noninterest Expense 19 Noninterest Expense Mix Commentary ($ in millions, except for FTEs) • Noninterest expense increased in 4Q21 primarily due to: 60 – Higher consulting, legal and other professional fees $55.1 related to clean-up merger and expenses related to consulting services received from FI
Slide 20: Interest Rate Sensitivity
Interest Rate Sensitivity 20 (1) Impact on NII from Interest Rate Change Loan Portfolio & Repricing Detail (December 31, 2021) (As of December 31, 2021) By Rate Type By Interest Type 1.6% 2.6% -1.4% 0.0% Fixed Swap -2.8% 50% 3% Fixed 50% Prime 10% 200 ($ in Millions) Adjustable Libor 180 $211 $214 $
Slide 21: 4Q21 Initiatives Update
4Q21 Initiatives Update 21 • Continued reducing brokered deposits to total deposits towards our target of 5%; loan to deposit ratio under 100% Deposits First • Added experienced private banking team to drive deposit growth • Continued work on enhancing a completely digital onboarding platform • Test
Slide 22: 4Q21 Initiatives Update
4Q21 Initiatives Update 22 • The Company completed a clean-up merger to simplify its capital structure, whereby: – Each outstanding share of Class B common stock was converted to 0.95 of a share of Class A common stock – A new class of non-voting Class A common stock was created – All shareholders h
Slide 23: Brand Awareness
Brand Awareness: 23 New Downtown Branch & I-95 High-Impact Walls amerantbank.com
Slide 24: Amerant CoverMe
24 Amerant CoverMe Launched in February 2022, CoverMe is a program that eliminates overdraft fees for up to $100 and helps customers avoid declined transactions, returned checks and overdrafts. Additionally, overdraft fees were reduced from $35 to $10 for domestic consumer accounts in 2Q22 amerantba
Slide 25: Appendices
Appendices amerantbank.com
Slide 26: Summary Financial Statements
Appendix 1 26 Summary Financial Statements December 31, (in millions) 2021 2020 2019 2018 Assets Cash and cash equivalents $274.2 $214.4 $121.3 $85.7 (1) Total Securities 1,293.7 1,307.6 1,666.5 1,671.2 (2) Mortgage Loans Held for Sale, at fair value 14.9 — — — (3) Loans held for sale, at lower of c
Slide 27: Summary Financial Statements (cont'd)
Appendix 1 27 Summary Financial Statements (cont’d) Years Ended December 31, (in thousands) 2021 2020 2019 2018 Total Interest Income $247,844 $260,554 $312,974 $309,358 Total Interest Expense 42,703 71,002 99,886 90,319 Net Interest Income $205,141 $189,552 $161,826 $219,039 (Reversal of) Provision
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) 2021 2020 2019 2018 Net income (loss) attributable to Amerant Bancorp Inc. $ 112,921 $ (1,722) $ 51,334 $ 45,833 Plus: (reversal of) provision for loan losses (16,500) 88,620 (3,150) 375 (1) 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) 2021 2020 2019 2018 Net income (loss) attributable to Amerant Bancorp Inc. $ 112,921 $ (1,722) $ 51,334 $ 45,833 Plus after-tax restructuring costs: Restructuring costs before income tax effect 7,057 11,925 5,046 6,39
Slide 31: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 31 Non-GAAP Financial Measures Reconciliations (cont’d)* 2021 2020 2019 2018 Net income (loss) / Average total assets (ROA) 1.50 % (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 — % — % — % 0.0
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) 2021 2020 2019 2018 Tangible common equity ratio: Stockholders' equity $ 831,873 $ 783,421 $ 834,701 $ 747,418 (11) Less: Goodwill and other intangibles (22,528) (21,561) (21,744)
Slide 33: Thank you
AMERANT amerantbank.com Thank you
Amerant Bancorp — Investor Presentation (December 2021) on 6ix