Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Mercantil Bank Holding — Q1 2019 Earnings Presentation
23 slides from Amerant Bancorp's earnings presentation, Apr 26, 2019
Slide 1: First Quarter 2019 Financial Review Earnings Call
First Quarter 2019 Financial Review Earnings Call April 26, 2019 Exhibit 99.2
Slide 2: Forward-Looking Statements
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, without limitation, future financial and operating results; costs and revenues; economic conditions generally and in
Slide 3: Net Income increased 38.6% over 1Q18 – Performance Highlights
Net Income increased 38.6% over 1Q18, or 16.2% as adjusted Net Income Before Income Tax increased 52.3% over 1Q18 Improved Net Interest Income (NII) versus 1Q18 on higher yields and rebalanced assets mix; Net Interest Margin (NIM) improved 26bps compared to 1Q18 Early termination of FHLB advances re
Slide 4: First Quarter 2019 Results
First Quarter 2019 Results Return on Assets(6) (ROA) Return on Equity(5) (ROE) Adjusted ROE(1) Adjusted ROA(1) Adjusted Efficiency Ratio(1) Efficiency Ratio(7) ($ in millions, except per share items) 1Q18 4Q18 1Q19 Net interest income $52.6 $56.8 $55.437178909999965 Net interest margin 2.7E-2 2.9499
Slide 5: Loan Portfolio Highlights
Loan Portfolio Highlights Loan Composition Geographic Mix (1) Continued planned reduction in quarter of FI and non-relationship SNC loans (C&I loans) in the amount of $41.0 million and $145.5 million, respectively, compared to 4Q18 Decline was partially offset by increases in domestic Owner-Occupied
Slide 6: Interest-Earning Assets
Interest-Earning Assets Loan yields slightly increased versus previous quarter Yields increased over year ago quarter attributed to improved loan mix and market rates Investment yields higher due to repricing of variable rate instruments ($ in millions, except for percentages)
Slide 7: Deposit Highlights
Deposit Highlights Deposit Composition Mix by Country of Domicile Total deposits down on brokered CD runoff and lower core balances mainly from international customers. Brokered CDs represent 10.0% of total deposits in 1Q19 vs. 11.5% in 1Q18 International deposit run-off at annualized rate of 9.8% i
Slide 8: Net Interest Income and NIM
Net Interest Income and NIM Net Interest Income and NIM (%) Commentary NII slightly lower versus 4Q18 due in part to $1 million loan recovery and lower average balances in 1Q19 due to loan seasonality Improving NII trend since 1Q18 driven by higher market rates and more favorable loan mix ($ in mill
Slide 9: Noninterest Income
Noninterest Income NON INTEREST INCOME Noninterest Income Mix Commentary Increase of $1.7 million in Other Noninterest Income due to: 4Q18 includes $1.0 million loss on securities sold 1Q19 includes $0.56 million gain on the early termination of FHLB advances Income from customers’ interest rate der
Slide 10: Noninterest Expense
Noninterest Expense Noninterest Expense Mix Commentary Decrease in FTEs Planned declines in assets pressuring noninterest expense to assets ratio Noninterest Expenses / Avg. Total Assets ($ in millions, except for FTEs) ($ in millions, except for percentages of Average Total Assets)
Slide 11: Adjusted Noninterest Expense
Adjusted Noninterest Expense (1) Adjusted Noninterest Expense Mix Commentary 4Q18 marketing expenses were lower than anticipated as we announced our rebranding and delayed $2.0 million of regular marketing expenses to focus on introduction of the Amerant brand We expect to spend approximately $5.0 m
Slide 12: Credit Quality
Credit Quality Overall credit quality and reserves coverage remains strong Isolated one-offs: Slight increase in NPL related to one commercial loan of $2.4 million, no trend observed Charge-off of $5.8 million in 4Q18 of a non-performing CRE loan in Houston, with a carrying value of $10.2 million (1
Slide 13: Interest Rate Sensitivity
Interest Rate Sensitivity The Company continues to be asset sensitive driven by floating rate loans and loans maturing in less than a year Given more recent market interest rate expectations, the Company has been reducing interest rate sensitivity Duration of investment portfolio including swaps inc
Slide 14: FY19 Goals
FY19 Goals Net Interest Income Noninterest Income Loans Noninterest Expenses Deposits Capital Management Credit Quality Conclude remix of loan portfolio by reducing low yielding international loans and non-relationship SNCs and continue replacing these with higher margin domestic relationship produc
Slide 15: Appendices
Appendices
Slide 16: Financial Highlights
Financial Highlights The following table sets forth selected financial information derived from our unaudited quarterly and audited annual consolidated financial statements. Outstanding loans are net of deferred loan fees and costs, and the allowance for loan losses. At March 31, 2019, total loans i
Slide 17: Financial Highlights
Financial Highlights The following table sets forth selected financial information derived from our unaudited quarterly and audited annual consolidated financial statements. (2) The earnings per common share reflect the reverse stock split which reduced the number of outstanding shares on a 1-for-3
Slide 18: Non-GAAP Financial Measures Reconciliations
Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from our unaudited consolidated financial statements adjusted for the costs incurred by the Company in the first quarter of 2019 and 2018 and the fourth quarter of 2018 related to restru
Slide 19: Non-GAAP Financial Measures Reconciliations (cont’d)
Non-GAAP Financial Measures Reconciliations (cont’d)
Slide 20: Non-GAAP Financial Measures Reconciliations (cont’d)
Non-GAAP Financial Measures Reconciliations (cont’d)
Slide 21: Non-GAAP Financial Measures Reconciliations (cont’d)
Non-GAAP Financial Measures Reconciliations (cont’d)
Slide 22: Non-GAAP Financial Measures Reconciliations (cont’d)
Non-GAAP Financial Measures Reconciliations (cont’d)
Slide 23: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com
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