Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q4 2019 Earnings Presentation
23 slides from Amerant Bancorp's earnings presentation, Jan 30, 2020
Slide 1: Fourth Quarter 2019 Financial Review Earnings Call
Fourth Quarter 2019 Financial Review Earnings Call January 30, 2020
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, without limitation, future financial and operating results; costs and revenues;
Slide 3: Performance Highlights FYE 2019 and 4Q19
Performance Highlights FYE 2019 and 4Q19 3 Strategy-Driven Achievements • Full-year net income increased 12.0% or $5.5 million; diluted EPS reached $1.20 from $1.08. In 4Q19, net income increased 12.9%, or $1.5 million from 3Q19; diluted EPS reached $0.31 from $0.28 • Noninterest income increased 15
Slide 4: Fourth Quarter 2019 Results
Fourth Quarter 2019 Results 4 (in millions, except per share items and (5) (1)(5) percentages) 4Q18 3Q19 4Q19 Return on Equity (ROE) Adjusted ROE Net Interest Income $ 56.8 $ 52.6 $ 51.3 10.89% Net Interest Margin (NIM) 2.95% 2.80% 2.74% 7.88% 6.30% Reversal of Provision for Loan Losses (1.4) (1.5)
Slide 5: Investment Portfolio
Investment Portfolio 5 Investment Securities Balances and Yields(1) Highlights (in millions) • Effective duration increased to 3.8 years as we 1,750 $23.1 $23.8 $24.0 prepared for continued rate decline by purchasing $85.2 $73.9 1,500 $77.6 20-year U.S. Treasuries and collateralized mortgage obligat
Slide 6: Loan Portfolio Highlights
6 Loan Portfolio Highlights Loan Composition Geographic Mix (Domestic) (Domestic)(1) 1.9% 1.9% 1.8% 1.8% 1.5% 6,000 1.2% 0.5% 0.4% 0.4% 0.3% 9.0% 9.3% 9.2% 9.2% 9.4% $738 5,000 $775 $812 $808 $772 13.1% 14.0% 14.4% 14.4% 15.6% $1,000 $943 $1,010 $965 4,000 $1,040 23.3% 21.6% 20.3% 19.6% 21.5% 3,000
Slide 7: Credit Quality
Credit Quality 7 Non-Performing Assets (1) / Total Assets Allowance for Loan Losses (in millions) $61.8 0.41% 0.42% 0.41% $60.3 $57.4 1.05% 0.26% 1.04% $53.6 $52.2 0.22% 0.99% 0.93% 0.91% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Allowance for Loan Losses ALL as a % of Total Loans Allowance
Slide 8: Interest-Earning Assets
8 Interest-Earning Assets(1) (in millions, except for percentages ) 8,000 7,000 $1,741 $1,701 $1,651 $1,633 $1,739 6,000 $5,920 $5,744 $5,813 $5,754 $5,744 5,000 4,000 4.74% 4.74% 4.75% 4.64% 4.47% 3,000 2,000 2.87% 2.98% 2.85% 2.73% 2.66% 1,000 0 4Q18 1Q19 2Q19 3Q19 4Q19 Loans(1) Investments(1) Loa
Slide 9: Wholesale Funding
9 Wholesale Funding FHLB and Other Borrowings by Maturity Advances from the Federal Home Loan Bank and Other December 31, 2019 Borrowings (in millions) Year of Maturity Interest Rate 2018 3Q19 4Q19 2021 17.0% 2019 1.80% to 3.86% 440 195 — 2020 23.1% 2022 2020 1.50% to 2.74% 306 325 285 9.7% 2021 1.7
Slide 10: Deposit Highlights
Deposit Highlights 10 Deposit Composition Mix by Country of Domicile (in millions, except for percentages) International Deposits 7,000 (in millions) ~12% Compound Annual Decline Rate $6,033 $5,888 6,000 $5,819 $5,693 $5,757 $642 $589 $619 $566 $682 5,000 $1,745 $1,770 $4,490 $1,721 $1,714 $1,758 $4
Slide 11: Net Interest Income and NIM
11 Net Interest Income and NIM Net Interest Income (NII) and NIM (%) Commentary • NIM down primarily on: (in millions, except for percentages ) – Yields on new loan production and floating interest earning assets due to lower market rates 60 $56.8 $55.4 – Higher prepayments on fixed rate loans and h
Slide 12: Noninterest Income Mix
12 Noninterest Income Mix Noninterest Income Mix Commentary (in millions) • Noninterest income FY 2019 includes: – $5.1 million income from derivatives sold to customers, including $2.5 million in 4Q19 18 – $2.8 million gain on sale of vacant land adjacent to our $16.0 16 operations center in 4Q19 $
Slide 13: Noninterest Expense
Noninterest Expense 13 Noninterest Expense Mix Commentary (in millions, except for FTEs) • Salaries and employee benefits FY 2019 includes: – $5.9 million of amortization of IPO restricted stock grant – $1.5 million in staff reduction costs related to the 60 restructuring plan $54.6 • Other operatin
Slide 14: Adjusted Noninterest Expense
14 Adjusted Noninterest Expense(1) Adjusted Noninterest Expense Mix Commentary • Since 4Q18, staffing has been reduced by 82 FTEs or 9.0% YTD (in millions, except for FTEs) • Salaries and employee benefits expense higher than last year due to cost of living adjustments of 1.8% effective July 1st (vs
Slide 15: Interest Rate Sensitivity
15 Interest Rate Sensitivity Commentary Loan Portfolio & Repricing Detail (As of December 31, 2019) • The Company continues to be asset sensitive driven by floating rate loans and loans maturing in less than a year Loan Portfolio By Rate Type Loan Portfolio By Interest Type • Given more recent marke
Slide 16: 2020 Goals
16 2020 Goals • Continue focus on domestic commercial Net Interest • Improve loan portfolio yield deposit growth by targeting new verticals/ while driving down deposit Deposits niches for deposits Income costs to drive up NIM • Increase domestic deposits and share of wallet from higher net worth int
Slide 17: Appendices
Appendices
Slide 18: Appendix Non-GAAP Financial Measures Reconciliations
Appendix 1 18 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related primarily to non
Slide 19: Appendix Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 19 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Years Ended December 31, December September December (in thousands, except per share amounts and percentages) 31, 2019 30, 2019 31, 2018 2019 2018 Net income $ 13,475 $ 11,931 $ 14,430 $ 51,334 $ 45,833 Plus after
Slide 20: Appendix Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 20 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Years Ended December 31, December September December (in thousands, except per share amounts and percentages) 31, 2019 30, 2019 31, 2018 2019 2018 Diluted earnings per share (4) $ 0.31 $ 0.28 $ 0.34 $ 1.20 $ 1.08
Slide 21: Appendix Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 21 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Years Ended December 31, December September December (in thousands, except per share amounts and percentages) 31, 2019 30, 2019 31, 2018 2019 2018 Salaries and employee benefits / Average total assets 1.81 % 1.70
Slide 22: Appendix Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 1 22 Non-GAAP Financial Measures Reconciliations (cont’d) (1) Expenses incurred for actions designed to implement the Company’s strategy as a new independent company. These actions include, but are not limited to reductions in workforce, streamlining operational processes, rolling out the A
Slide 23: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com