Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q1 2021 Earnings Presentation
26 slides from Amerant Bancorp's earnings presentation, Apr 28, 2021
Slide 1: First Quarter 2021 Financial Review
Earnings Call April 29, 2021 First Quarter 2021 Financial Review
Slide 2: Forward-Looking Statements
2 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 statements that are not historica
Slide 3: Performance Highlights 1Q21
3 • All capital ratios are above "well capitalized" levels • Initiated Class B common stock repurchase program on March 10, 2021; as of April 27, 2021, have repurchased over $3.9 million, representing 243,167 shares of Class B common stock at a weighted average price of $16.06 Performance Highlights
Slide 4: Focused on Key Performance Metrics
4 85.8% 70.7% 4Q20 1Q21 15.2% 17.2% 4Q20 1Q21 12.7% 12.9% 4Q20 1Q21 2.61% 2.66% 4Q20 1Q21 Focused on Key Performance Metrics Robust Deposit Base Robust Capital Position Higher Operating Profitability Rationalizing Cost Structure (1) Calculated based upon the average daily balance of total assets. (2
Slide 5: Investment Portfolio Balances and Yields
5 86.1% 13.9% U.S. Gov't sponsored enterprises 51.3% U.S. Gov't agency 18.2% Municipals 1.3% Corporate debt 29.0% US treasury 0.2% $1,601.3 $1,225.1 $1,190.2 $70.3 $58.1 $104.7 $24.2 $24.3 $24.0 2.45% 2.21% 2.15% 1Q20 4Q20 1Q21 0 500 1,000 1,500 87.3% 12.7% • Effective duration increased vs. 4Q20 du
Slide 6: Loan Portfolio Highlights
6 51.8% 50.2% 50.4% 48.6% 48.5% 19.4% 21.5% 20.5% 20.1% 19.5% 16.3% 16.0% 15.8% 16.2% 16.3% 10.0% 10.1% 10.1% 10.9% 10.9% 2.5% 2.2% 3.2% 4.2% 4.8% 4.31% 3.77% 3.64% 3.76% 3.77% 1Q20 2Q20 3Q20 4Q20 1Q21 65.3% 66.3% 66.5% 66.2% 66.1% 18.2% 17.8% 17.9% 17.8% 18.0% 13.3% 12.9% 12.6% 12.9% 12.9% 3.2% 3.0
Slide 7: Credit Quality
7 $72.9 $119.7 $116.8 $110.9 $110.9 1.29% 2.04% 1.97% 1.90% 1.93% 1Q20 2Q20 3Q20 4Q20 1Q21 0.09% 0.13% 1.41% 0.40% —% 1Q20 2Q20 3Q20 4Q20 1Q21 • Credit quality remains sound and reserve coverage is strong • No provision for loan losses necessary in 1Q21 Net Charge-Offs / Average Total Loans (2) Cred
Slide 8: Deposit Highlights
8 $5,842 $6,024 $5,878 $5,732 $5,678 $2,521 $2,634 $2,686 $2,679 $2,759 $1,894 $1,846 $1,767 $1,547 $1,388 $647 $588 $508 $634 $553 $780 $956 $917 $872 $978 1.18% 0.95% 0.82% 0.69% 0.60% 1Q20 2Q20 3Q20 4Q20 1Q21 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 $3,031 $2,635 $2,529 $2,503 2018 2019 2020 1
Slide 9: Net Interest Income and NIM
9 $49.2 $46.3 $45.4 $48.7 $47.6 2.65% 2.44% 2.39% 2.61% 2.66% Net Interest Income NIM 1Q20 2Q20 3Q20 4Q20 1Q21 0 10 20 30 40 50 60 NIM increased in 1Q21 primarily due to: – Lower overall cost of deposits – Reduced customer CDs volumes Net interest income down in 1Q21 primarily on: – Lower average lo
Slide 10: Noninterest Income
10 $21.9 $19.8 $20.3 $11.5 $14.2 $4.3 $3.4 $3.9 $4.2 $4.1 $4.1 $4.3 $4.3 $4.2 $4.6 $9.6 $7.7 $8.6 $1.0 $2.6 $3.9 $4.4 $3.5 $2.1 $2.9 1Q20 2Q20 3Q20 4Q20 1Q21 0 2 4 6 8 10 12 14 16 18 20 22 7% 93% 10% 90% Noninterest Income Mix Noninterest Income Mix Commentary • Net gain on sale of securities from p
Slide 11: Noninterest Expense
11 Decrease in noninterest expense in 1Q21 primarily due to: • Lower salaries and employee benefits due to separation plans implemented in 4Q20 • 4Q20 salaries and employee benefits expenses included severance costs • Increase in FTEs resulting from strategic hirings in business units: ◦ Amerant Mor
Slide 12: Interest Rate Sensitivity
12 $199 $201 $205 $208 $210 -50 bps -25 bps BASE +25 bps +50 bps 160 180 200 (As of March 31, 2021) Fixed 52% Adjustable 48% Interest Rate Sensitivity By Interest TypeBy Rate Type By Repricing Term (1) NII and percentage change represents the base scenario of net interest income. The base scenario a
Slide 13: Initiatives: Near and Long-term
13Initiatives: Near and Long-term • “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
Slide 14: Supplemental Loan Portfolio Information
Supplemental Loan Portfolio Information
Slide 15: Deferrals & Forbearance due to COVID-19
15Deferrals & Forbearance due to COVID-19 • 10 customers remaining totaling $62MM or 1.1% of total loans vs. 21.4% at 6/5/20 peak • Mainly CRE NY: 2 CRE retail $41MM, 1 CRE office $8MM and 3 multifamily $12MM • Increase in 1Q21 due to 1 CRE retail NY $28.6MM, 1 CRE office NY with ground floor retail
Slide 16: Loan portfolio by industry
16Loan portfolio by industry • Diversified portfolio - highest sector concentration, other than real estate, at 10.2% of total loans • 76% of total loans secured by real estate • Main concentrations: • CRE or Commercial Real Estate • Wholesale - Food • Retail - Gas stations • Services – Healthcare,
Slide 17: Industries with escalated monitoring: Travel, Entertainment and Dining
17Industries with escalated monitoring Travel, Entertainment and Dining Very limited exposure: • Arts, Entertainment and Recreation $38 MM (0.2% of total loans) - $26 MM Marinas and $8 MM Bowling • Restaurants $39 MM (0.7% of total loans) - 52% Limited- service, 21% Full-service, 27% Other • Aviatio
Slide 18: Industries with escalated monitoring: Commercial Real Estate
18Industries with escalated monitoring Commercial Real Estate (CRE) CRE Type FL TX NY Other Total % Total CRE % Total Loans Income Producing (1) Land and Construction Retail $ 601 $ 193 $ 285 $ — $ 1,079 38.7 % 18.8 % $ 1,065 $ 14 Multifamily 305 316 304 — 925 33.2 % 16.1 % 723 202 Office 294 16 58
Slide 19: Industries with escalated monitoring: CRE Hotels
19Industries with escalated monitoring CRE Hotels (As of 03/31/2021) • CRE Hotel portfolio is limited to 27 properties, majority of which are in popular travel destinations such as Miami Beach (#9 / $104 MM) and New York (#2 / $72 MM) • Three hotel construction loans to borrowers who are experienced
Slide 20: Industries with escalated monitoring: CRE Retail
20 11% 23% 41% 19% 6% 50% or less 50- 60% 60- 70% 70- 80% 80% or more 0% 10% 20% 30% 40% 50% 60% Industries with escalated monitoring CRE Retail (As of 03/31/2021) • Florida and Texas are focused on neighborhood shopping centers or service centers with basic needs related anchor stores, as well as t
Slide 21: Appendices
Appendices
Slide 22: Non-GAAP Financial Measures Reconciliations
22Appendix 1 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented related primarily to tax
Slide 23: Non-GAAP Financial Measures Reconciliations (cont'd)
23Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, ($ in thousands, except per share amounts) March 31, 2021 December 31, 2020 March 31, 2020 Net income $ 14,459 $ 8,473 $ 3,382 Plus after-tax restructuring costs: Restructuring costs before income tax effect 240 8,
Slide 24: Non-GAAP Financial Measures Reconciliations (cont'd)
24Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, March 31, 2021 December 31, 2020 March 31, 2020 Diluted earnings per share (4) $ 0.38 $ 0.20 $ 0.08 Plus: after tax impact of restructuring costs 0.01 0.05 0.01 Plus: after tax loss on sale of the Beacon Operations
Slide 25: Non-GAAP Financial Measures Reconciliations (cont'd)
25Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, ($ in thousands, except per share amounts and percentages) March 31, 2021 December 31, 2020 March 31, 2020 Stockholders' equity $ 785,014 $ 783,421 $ 841,117 Less: goodwill and other intangibles (21,515) (21,561) (
Slide 26: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com