Amerant Bancorp Inc. · NYSE:AMTB
Amerant Bancorp — Q4 2021 Earnings Presentation
26 slides from Amerant Bancorp's earnings presentation, Jan 19, 2022
Slide 1: Earnings Call Fourth Quarter 2021
Earnings Call January 20, 2022 Fourth Quarter 2021
Slide 2: Forward-Looking Statements
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 respect to the Company’s objectives, e
Slide 3: Performance Highlights 4Q21
3 • All capital ratios are above "well capitalized" levels • Completed previously announced clean-up merger to simplify capital structure; declared $0.06 cash dividend in December; based on 4Q21 results, declared a $0.09 cash dividend payable in February 2022 • $27.9 million and 893,394 Class A shar
Slide 4: Shares Outstanding - Post Merger
4Shares Outstanding -Post Merger 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 Class A Repurchase Program (1) 893,394 Others (2) 44,804 Issued and outstanding as of Dece
Slide 5: Core PPNR - 4Q21
5Core PPNR(1) - 4Q21 CORE PPNR(1) increased 3.4% compared to 3Q21 (1) Non-GAAP Financial Measure (( 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 Pre-provision
Slide 6: Key Actions - 4Q21
6Key Actions - 4Q21 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 announced
Slide 7: Focused on Key Performance Metrics
7 74.2% 41.4% 3Q21 4Q21 21.5% 21.0% 3Q21 4Q21 13.3% 13.5% 3Q21 4Q21 2.94% 3.17% 3Q21 4Q21 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 8: Amerant Mortgage ("AMTM")
8Amerant Mortgage ("AMTM") • 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 million Data as of December 31, 2021 In Thousands Highlights
Slide 9: Investment Portfolio Balances and Yields
9 89.4% 10.6% U.S. Gov't sponsored enterprises 38.4% U.S. Gov't agency 30.8% Corporate debt 30.4% Other 0.4% $1,225.1 $1,220.4 $1,175.3 $58.1 $130.5 $118.2 $24.3 $23.9 $0.3 2.21% 2.25% 2.37% 4Q20 3Q21 4Q21 0 500 1,000 1,500 86.4% 13.6% • Effective duration increased vs. 4Q20 due to lower levels of p
Slide 10: Loan Portfolio Highlights
10 48.6% 48.5% 48.6% 48.1% 45.3% 20.1% 19.5% 18.1% 16.9% 17.6% 16.2% 16.3% 16.8% 17.1% 17.3% 10.9% 10.9% 11.0% 11.4% 12.2% 4.2% 4.8% 5.5% 6.5% 7.6% 3.76% 3.77% 3.89% 3.92% 4.10% 4Q20 1Q21 2Q21 3Q21 4Q21 66.2% 66.1% 65.5% 68.3% 69.8% 17.8% 18.0% 18.4% 17.2% 18.4% 12.9% 12.9% 13.1% 11.4% 8.8% 3.1% 3.0
Slide 11: New York Closed LPO - Update
11New York Closed LPO -Update • Declined to $491 million in 4Q21 from $627 million in 3Q21 • $49.4 million loans sold at par in 4Q21 • Sub-lease of former office at 52nd and Madison signed in 4Q21 Contractual Maturity Schedule: As of December 31, 2021
Slide 12: Credit Quality
12 $110.9 $110.9 $104.2 $83.4 $69.91.90% 1.93% 1.86% 1.59% 1.29% 4Q20 1Q21 2Q21 3Q21 4Q21 0.40% —% 0.12% 1.16% 0.52% 4Q20 1Q21 2Q21 3Q21 4Q21 • Credit quality remains sound and reserve coverage is strong; released $6.5 million from the ALL in 4Q21 compared to $5.0 million in 3Q21 • 100% of Non-Perfo
Slide 13: Deposit Highlights
13 $5,732 $5,678 $5,675 $5,626 $5,631 $2,679 $2,759 $2,835 $2,875 $3,013 $1,547 $1,388 $1,243 $1,107 $1,048 $634 $553 $531 $433 $387 $872 $978 $1,066 $1,211 $1,183 0.69% 0.60% 0.52% 0.44% 0.41% 4Q20 1Q21 2Q21 3Q21 4Q21 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 $3,031 $2,635 $2,529 $2,494 2018 2019
Slide 14: Net Interest Income and NIM
14 $48.7 $47.6 $50.0 $51.8 $55.8 2.61% 2.66% 2.81% 2.94% 3.17% Net Interest Income NIM 4Q20 1Q21 2Q21 3Q21 4Q21 0 10 20 30 40 50 60 NII increased in 4Q21 primarily due to: • Higher average yields, including prepayment fees • Higher average balances on loans • Lower average balances on customer CDs a
Slide 15: Noninterest Income
15 $11.5 $14.2 $15.7 $13.4 $4.2 $4.1 $4.3 $4.3 $4.5 $4.2 $4.6 $4.4 $4.6 $5.0 $1.0 $2.6 $1.3 $2.1 $2.9 $5.7 $4.5 $5.4 $62.4 4Q20 1Q21 2Q21 3Q21 4Q21 0 2 4 6 8 10 12 14 16 18 20 22 24 9% 91% 12% 88% Noninterest Income Mix Noninterest Income Mix Commentary Noninterest income increased in 4Q21 primarily
Slide 16: Noninterest Expense
16 • Noninterest expense increased in 4Q21 primarily due to: – Higher consulting, legal and other professional fees related to clean-up merger and expenses related to consulting services received from FIS – Higher salaries and employee benefits due to new hires primarily in AMTM and private banking
Slide 17: Interest Rate Sensitivity
17 $211 $214 $217 $221 $223 -50 bps -25 bps BASE +25 bps +50 bps 160 180 200 (December 31, 2021) Fixed 50% Adjustable 50% Interest Rate Sensitivity By Interest TypeBy Rate Type By Repricing Term (1) NII and percentage change represents the base scenario of net interest income. The base scenario assu
Slide 18: 4Q21 Initiatives Update
184Q21 Initiatives Update • Continued reducing brokered deposits to total deposits towards our target of 5%; loan to deposit ratio under 100% • Added experienced private banking team to drive deposit growth • Continued work on enhancing a completely digital onboarding platform • Tested a digital pro
Slide 19: 4Q21 Initiatives Update: Increasing Profitability and Shareholder Value
194Q21 Initiatives Update Focused on increasing profitability and shareholder value • The Company completed a clean-up merger to simplify its capital structure, whereby: – Each outstanding share of Class B common stock was converted to 0.95 of a share of Class A common stock – A new class of non-vot
Slide 20: Brand Awareness: New Downtown Branch & I-95 High-Impact Walls
20Brand Awareness: New Downtown Branch & I-95 High-Impact Walls
Slide 21: Appendices
Appendices
Slide 22: Appendix Non-GAAP Financial Measures Reconciliations
22Appendix 1 Non-GAAP Financial Measures Reconciliations The following table sets forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain costs incurred by the Company in the periods presented relate
Slide 23: Appendix Non-GAAP Financial Measures Reconciliations (cont'd)
23Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Years Ended December 31, ($ in thousands) December 31, 2021 September 30, 2021 December 31, 2020 2021 2020 Net income (loss) attributable to Amerant Bancorp Inc. $ 65,469 $ 17,031 $ 8,473 $ 112,921 $ (1,722) Plus a
Slide 24: Appendix Non-GAAP Financial Measures Reconciliations (cont'd)
24Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) Three Months Ended, Years Ended December 31, ($ in thousands, except per share amounts and percentages) December 31, 2021 September 30, 2021 December 31, 2020 2021 2020 Net income (loss) / Average stockholders' equity (ROE) 32.04 % 8.
Slide 25: Appendix Non-GAAP Financial Measures Reconciliations (cont'd)
25Appendix 1 Non-GAAP Financial Measures Reconciliations (cont’d) (1) The Company sold its Coral Gables headquarters for $135 million, with an approximate carrying value of $69.9 million at the time of sale and transaction costs of $2.6 million. The Company leased-back the property for an 18-year te
Slide 26: Thank you
Thank you Investor Relations InvestorRelations@amerantbank.com