Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Investor Presentation (June 2021)
33 slides from Amerant Bancorp's investor presentation, Jun 30, 2021
Slide 1: Investor Update
amerantbank.com Investor Update As of June 30, 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 (in millions, except per share data 2Q21 YTD 2020 2019 2018 and percentages) Balance Sheet • Founded in 1979 Assets $ 7,533 $ 7,771 $ 7,985 $ 8,124 History • Completed IPO in Dec. 2018 Loans 5,609 5,842 5,744 5,920 • Rebranded as Amerant in June 2019 Deposits 5,675 5,
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 domestic • Loan book well- • Wealth management • Dynamic initia
Slide 5: Experienced Management Team
5 Experienced Management Team • Vice-Chairman & Chief Executive Officer since March 2021 Jerry • Served as Executive Vice-Chairman from Feb 2021 until Mar 2021 and has served on Plush the Board of Directors since July 2019 Vice-Chairman & • Former partner at Patriot Financial Partners Chief Executiv
Slide 6: Growing and Diverse Markets
Growing and Diverse Markets 6 (1) (2) Branch Footprint Deposit Market Share Market Demographics June 30, 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 Bro
Slide 7: Performance Highlights 2Q21
Performance Highlights 2Q21 7 • Net income attributable to the company of $16.0 million in 2Q21, up 10.4% compared to 1Q21 Earnings • Diluted earnings per share was $0.42 for 2Q21, compared to $0.38 in 1Q21 • Total loans were $5.6 billion compared to $5.8 billion in 1Q21 (2Q21 reflects $155 million
Slide 8: Focused on Key Performance Metrics
Focused on Key Performance Metrics 8 Higher Robust Rationalizing Operating Deposit Base Cost Structure Profitability Highlights 18.8% 2.81% • Higher efficiency ratio in 17.2% 2.66% 77.8% 2Q21 compared to 1Q21 70.7% includes effect of higher restructuring expenses and prepayment costs of FHLB advance
Slide 9: Investment Portfolio
Investment Portfolio 9 (1) Balances and Yields Highlights ($ in millions) $24.4 1,500 $65.6 $24.0 $24.0 • Effective duration decreased vs. 1Q21 due to $104.7 $93.3 higher expected prepayments driven by the 1,000 2.38% 2.15% 2.14% decline in long term rates during 2Q21 500 $1,519.8 $1,190.2 $1,194.1
Slide 10: Loan Portfolio Highlights
Loan Portfolio Highlights 10 Loan Composition Geographic Mix (Domestic) 2.2% 3.2% 4.2% 4.8% 5.5% 10.1% 10.1% 10.9% 10.9% 11.0% 3.0% 3.0% 3.1% 3.0% 3.0% 16.0% 15.8% 12.9% 12.6% 12.9% 12.9% 13.1% 16.2% 16.3% 16.8% 17.8% 17.9% 17.8% 18.0% 18.4% 3.89% 21.5% 20.5% 20.1% 19.5% 18.1% 50.2% 50.4% 48.6% 48.5
Slide 11: Credit Quality
Credit Quality 11 Non-Performing Assets (1) / Total Assets Allowance for Loan Losses ($ in millions) 1.61% $119.7 $116.8 $110.9 $110.9 1.13% 1.16% $104.2 1.08% 0.95% 2.04% 1.97% 1.93% 1.90% 1.86% 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 Allowance for Loan Losses ALL as a % of Total Loans Al
Slide 12: Deposit Highlights
Deposit Highlights 12 Deposit Composition Mix by Country of Domicile ($ in millions, except for percentages) International Deposits ($ in millions) 7,000 $6,024 $5,878 6,000 $5,732 $5,678 $5,674 ~7% Com pou nd Annual $956 $917 Decline Rat $872 $978 $1,066 e 5,000 $588 $508 $634 $553 $531 4,000 $1,84
Slide 13: Net Interest Income and NIM
Net Interest Income and NIM 13 Net Interest Income (NII) and NIM (%) Commentary ($ in millions, except for percentages) 60 NII increased in 2Q21 primarily due to: $50.0 $48.7 50 $47.6 $46.3 $45.4 2.81% • Higher average loan yields 40 2.66% • Lower overall cost of customer deposits 2.61% 30 • Reduced
Slide 14: Noninterest Income Mix
14 Noninterest Income Mix Noninterest Income Mix Commentary ($ in millions) • Other noninterest income in 2Q21 includes 22 $3.8 million gain on the sale of $95.1 million of $19.8 $20.3 PPP loans and $1.3 million in derivative income 20 18 $3.5 $4.4 • 2Q21 Offsets: $2.5 million net loss on early $15.
Slide 15: Noninterest Expense
Noninterest Expense 15 Noninterest Expense Mix Commentary ($ in millions, except for FTEs) 60 Increase in noninterest expense in 2Q21 primarily due to: $51.6 $51.1 50 • Higher salaries and employee $45.5 benefits due to increased $43.6 severance costs $19.3 40 $20.3 $36.7 $17.2 • Higher recruitment
Slide 16: Interest Rate Sensitivity
Interest Rate Sensitivity 16 (1) Impact on NII from Interest Rate Change Loan Portfolio & Repricing Detail (As of June 30, 2021) (As of June 30, 2021) By Rate Type By Interest Type 2.4% Swap 1.6% Fixed 4% 0.0% 52% -1.5% Fixed -2.5% Prime 52% 200 7% ($ in Millions) 180 $208 $211 $213 Adjustable $203
Slide 17: Initiatives Update
Initiatives Update 17 • “Deposits First” • Brand Awareness • Rationalization of Lines of Business and Geographies • Path to 60% Efficiency Ratio • Capital Structure Optimization • ESG Focused on increasing profitability and shareholder value amerantbank.com
Slide 18: Supplemental Loan Portfolio Information
Supplemental Loan Portfolio Information amerantbank.com
Slide 19: Deferrals & Forbearance Update
19 Deferrals & Forbearance Update • 4 customers remaining totaling $54MM or CRE requests as % of their respective portfolio: 1.0% of total loans vs. 21.4% at 6/5/20 peak • All in CRE NY: 2 CRE retail $41MM, 1 CRE office with ground floor retail $8MM and 1 multifamily $5MM Relief Requests • Decrease
Slide 20: Loan portfolio by industry
Loan portfolio by industry 20 (Jun 30, 2021) Non-Real % Total Unfunded ($ in millions) Real Estate Estate Total Loans Commitments(8) 2 Financial Sector (1) $ 5 $ 58 $ 63 1.1 %4 $ 10 Construction and Real Estate & Leasing: Commercial real estate loans 2,719 — 2,719 48.6 % 190 Other real estate relate
Slide 21: Industries with escalated monitoring: Travel, Entertainment and Dining
Industries with escalated monitoring 21 Travel, Entertainment and Dining (Jun 30, 2021) Real Non-Real % Total Unfunded ($ in millions) Estate Estate Total Loans Commitments(1) Arts, Entertainment, and Recreation 9 1 10 0.2 % — Limited-Service Restaurants 10 10 20 0.3 % 22 Full-Service Restaurants 9
Slide 22: Industries with escalated monitoring: Commercial Real Estate
Industries with escalated monitoring 22 Commercial Real Estate (CRE) (Jun 30, 2021) ($ in millions, except %) % Total Income Land and CRE Type FL TX NY Other Total % Total CRE Loans Producing (1) Construction Retail $ 603 $ 192 $ 282 $ — $ 1,077 39.6 % 19.3 % $ 1,069 $ 8 Multifamily 277 294 295 — 86
Slide 23: Industries with escalated monitoring: CRE Hotels
Industries with escalated monitoring 23 CRE Hotels (As of 06/30/2021) Hotels Hotels - LTV 50% 40% 38% Boutique 36% 26% 30% Full Service 20% 38% 11% 11% Limited Service 36% 10% 4% 0% 50% 50-60% 60-70% 70-80% 80% or Total: $286 million or less more Loan Portfolio Percentage: 5.1% Highlights • CRE Hote
Slide 24: Industries with escalated monitoring: CRE Retail
Industries with escalated monitoring 24 CRE Retail (As of 06/30/2021) CRE Retail (1) CRE Retail - Single Retail - LTV (1) Tenant 60% 50% Neighborhood Center Vacant 40% 19% 15% Groceries 40% Theme/Festival Center 4% Education 14% 9% 30% 25% Single Tenant 20% 18% 24% Food and 11% Health Community Cent
Slide 25: Appendices
Appendices amerantbank.com
Slide 26: Appendix 1: Summary Financial Statements
Appendix 1 26 Summary Financial Statements June 30, December 31, (in millions) 2021 2020 2019 2018 Assets Cash and cash equivalents $171.5 $214.4 $121.3 $85.7 (1) Total Securities 1,311.6 1,307.6 1,666.5 1,671.2 Mortgage Loans Held for Sale (HFS) 1.8 — — — Loans, Gross (Excl HFS) 5,606.8 5,842.3 5,7
Slide 27: Summary Financial Statements (cont'd)
27 Appendix 1 Summary Financial Statements (cont’d) Six months ended (in thousands) June 30, 2021 2020 2019 2018 Total Interest Income $121,502 $260,554 $312,974 $309,358 Total Interest Expense 23,962 71,002 99,886 90,319 Net Interest Income $97,540 $189,552 $161,826 $219,039 Provision for (Reversal
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) 2Q21 YTD 2020 2019 2018 Net income (loss) attributable to Amerant Bancorp Inc. $ 30,421 $ (1,722) $ 51,334 $ 45,833 Plus: (reversal of) provision for loan losses (5,000) 88,620 (3,150) 375 Plus: provision for income t
Slide 30: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 30 Non-GAAP Financial Measures Reconciliations (cont’d)* (in thousands) 2Q21 YTD 2020 2019 2018 Net income (loss) attributable to Amerant Bancorp Inc. $ 30,421 $ (1,722) $ 51,334 $ 45,833 Plus after-tax restructuring costs: Restructuring costs before income tax effect 4,404 11,925 5,046 6
Slide 31: Non-GAAP Financial Measures Reconciliations (cont'd)
Appendix 2 31 Non-GAAP Financial Measures Reconciliations (cont’d)* 2Q21 YTD 2020 2019 2018 Net income (loss) / Average total assets (ROA) 0.80 % (0.02)% 0.65 % 0.55 % Plus: after tax impact of restructuring costs 0.09 % 0.06 % 0.05 % 0.06 % Plus: after tax impact of total spin-off costs — % — % — %
Slide 32: Non-GAAP Financial Measures Reconciliations (cont'd)
32 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 $ 799,068 $ 783,421 $ 834,701 $ 747,418 Less: Goodwill and other intangibles (22,505) (21,561) (21,744) (21,
Slide 33: Thank you
AMERANT amerantbank.com Thank you